Municipal Bonds, 2010

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by Aaron Barnes

ince 2009, State and local governments have been

able to issue three types of bonds to finance essential

operations, facilities, infrastructure, and services for

their constituents.1 These three types are tax-exempt, tax

credit, and direct payment bonds. Tax-exempt bonds provide bondholders (or investors) interest payments that are

exempt from Federal taxation, and often State and local

taxation. Tax credit bonds differ from tax-exempt bonds

in that they are not explicitly interest-bearing obligations.

In lieu of, or in addition to, receiving periodic interest

payments from the bond issuer, a tax credit bondholder

is generally allowed an income tax credit while the bond

is outstanding.2 Direct payment bonds provide issuers

with a Federal subsidy equal to some percentage of the

total interest payment made to bondholders. The interest received is subject to Federal taxation; however, the

interest rate is generally greater than that of a tax-exempt

bond, all things being equal.

Figure A provides an overview of the municipal

bond market for 2010. State and local governments

raised $556.9 billion from tax-exempt, tax credit, and

direct payment bonds. Tax-exempt bond proceeds totaled

$420.7 billion, or 75.5 percent, of all municipal bond proceeds during the year, while tax credit bond proceeds

totaled almost $1.1 billion and accounted for 0.2 percent.

Some 24.3 percent of all municipal bond proceeds came

from the recently introduced direct payment bonds and

totaled more than $135.1 billion.

This article presents information for the three

types of municipal bond financing options available in

Calendar Year 2010. The first section looks at several defining characteristics of tax-exempt bonds and provides

an overview of the market by State. The next section

covers the development of tax credit bond programs and

presents tax credit bond data for 2010. The third section

of this article discusses direct payment bonds programs

and presents bond data for 2010.

Tax-exempt bond data presented here are based

on the populations of Forms 8038, Information Return

Aaron Barnes is an economist with the Special Studies

Special Projects Section. This data release was prepared

under the direction of Melissa Ludlum, Chief.

All Municipal Bonds: Total Tax-Exempt, Taxable

Direct Payment, and Tax Credit Bonds, by Amount

of Proceeds, 2010

[Money amounts are in millions of dollars]

Type of bond

Number

Amount of

proceeds

Percentage

of total

amount

(1)

(2)

(3)

29,315

556,890

100.0

Tax-exempt bonds

25,660

420,679

75.5

Taxable direct payment bonds [2]

3,456

135,127

24.3

199

1,084

0.2

Total [1]

Tax credit bonds [3]

[1] Includes combined data from all governmental, private activity bond, Build America

Bonds, and specified tax credit and tax credit bond returns (Form 8038-G, Information

Return for Tax-Exempt Governmental Obligations; Form 8038, Information Return for TaxExempt Private Activity Bond Issues; Form 8038-B, Information Return for Build America

Bonds and Recovery Zone Economic Development Bond; and Form 8038-TC, Information

Return for Tax Credit Bonds and Specified Tax Credit Bonds ).

[2] Includes bonds reported on Form 8038-B and Form 8038-G with a specific reference to

"Build America Bond direct payment" or "Recovery Zone Economic Development Bond" in

either their issue name or other description. Includes specified tax credit bonds reported on

Form 8038 and Form 8038-TC that indicate the issuer elected to apply section 6431(f) to

receive a refundable credit in lieu of tax credits under section 54(A). Issuers who elect to

apply section 6431(f) are eligible to receive Federal direct payments and are classified as

"taxable direct payment bonds" for purposes of this figure.

[3] Includes bonds reported on Form 8038, Form 8038-B, and Form 8038-TC with a specific

reference to "qualified school construction" bonds, "qualified zone academy" bonds, "new

clean renewable energy" bonds, "qualified energy conservation" bonds, or "Build America

Bond tax credit" bonds in either their issue name or other description. Excludes bonds

reported on Form 8038 and Form 8038-TC that indicate the issuer elected to apply section

6431(f) to receive a refundable credit in lieu of tax credits under section 54(A).

NOTE: Detail may not add to totals because of rounding.

for Tax-Exempt Private Activity Bond Issues, and

Forms 8038-G, Information Return for Tax-Exempt

Governmental Obligations, filed with the Internal

Revenue Service (IRS) for bonds issued during 2010.

Direct payment bond data are based on populations of

Forms 8038-B, Information Return for Build America

Bonds and Recovery Zone Economic Development Bonds,

and Forms 8038-TC, Information Return for Tax Credit

Bonds and Specified Tax Credit Bonds, filed for specified

tax credit bonds issued during the year.3 Data for issuers of direct payment bonds requesting credit payments

are based on the population of Forms 8038-CP, Return

for Credit Payments to Issuers of Qualified Bonds, for

bonds with interest payments occurring in Calendar Year

2010. Tax credit bond data are based on the population of

Forms 8038-TC filed for tax credit bonds issued during

The term “State” includes the District of Columbia, U.S. Possessions, and Federally recognized Indian Tribal governments.

Issuers of certain qualified tax credit bonds, specifically new clean renewable energy bonds and qualified energy conservation bonds, pay bondholders an interest payment

in addition to the tax credit the bondholder receives. For additional information, see “Frequently Asked Question on Qualified Tax Credit Bonds and Specified Tax Credit

Bonds” at http://www.irs.gov/pub/irs-tege/tc_and_stcb_q-a._09-07-10_1.5.pdf.

3 Issuers of Build America Bonds and recovery zone economic development bonds were instructed to file Form 8038-B, Information Return for Build America Bonds and

Recovery Zone Economic Development Bonds. The 2010 data contain a small number of Forms 8038-G, Information Return for Tax-Exempt Governmental Obligations, with a

specific reference to “Build America Bond direct payment” or “Recovery Zone Economic Development Bond” in either their issue name or other description.

112

Figure A

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Calendar Year 2010.4 The vast majority of these returns

were filed in 2010 and 2011.5

Tax-Exempt Bonds

Tax-exempt bonds issued by State and local governments

are classified as either “governmental” or “private activity,” depending on whether the proceeds are used

and secured by public or private entities and resources.

Between Calendar Years 2009 and 2010, the total amount

of tax-exempt bonds issued by State and local governments decreased 5.7 percent, from $446.2 billion to

$420.7 billion.6 For 2010, governmental bonds accounted

for $293.6 billion (69.8 percent) of total tax-exempt bond

proceeds, a decrease of 13.8 percent from $340.7 billion

issued in 2009. Private activity bonds accounted for the

remaining $127.1 billion (30.2 percent).

When a bond is issued, the issuer is obligated to

repay the borrowed bond proceeds at a specified rate of

interest, by some future date. For Federal income tax

purposes, investors who purchase governmental bonds

and certain types of private activity bonds are able to

exclude the bond interest from their gross incomes.7,8

This tax exemption lowers the borrowing cost incurred

by tax-exempt bond issuers, since bondholders are generally willing to accept an interest rate lower than that

earned on comparable taxable bonds.9,10

Both governmental and private activity bonds are

obligations issued by, or on behalf of, State and local

governmental units; use of the proceeds differentiates

the two. Governmental bond proceeds finance essential

government operations, facilities, and services for general public use, and the debt service on these bonds is

paid from general governmental sources. Private activity

bonds are issued by, or on behalf of, State or local governments to finance the project of a private user. Since

private activity bond proceeds are used by one or more

private entities, the debt service is also paid or secured

by one or more private entities.11 Interest income earned

on most private activity bonds is taxable. However, over

the years, Congress has deemed certain types of private

activities necessary for the public good, and therefore,

interest income earned on “qualified private activity

bonds,” as defined in IRC section 141(e), is generally tax

exempt.12,13

Tax-Exempt Bond Volume, by Term of Issue

Bonds are classified as either short term or long term,

depending on the length of time from issuance to maturity. Bonds having maturities of less than 13 months are

typically classified as short term, while those having maturities of 13 months or more are classified as long term.

Of the $293.6 billion in tax-exempt governmental bonds

issued, long-term bonds accounted for $217.3 billion,

more than 74 percent of all governmental bond proceeds

in 2010. Long-term bonds are generally used to finance

construction or other capital improvement projects.

The remaining $76.4 billion of governmental bonds

were issued for short-term projects. Most short-term

4 Prior to June 2010, issuers of tax credit bonds were instructed to file Form 8038, Information Return for Tax-Exempt Private Activity Bond Issues. The 2010 data include a

small number of tax credit bonds reported on Form 8038 that specifically reference “qualified school construction” bonds, “clean renewable energy” bonds, “Midwestern tax

credit” bonds, or “qualified zone academy” bonds. For tax credit bonds issued after March 2010, issuers were required to file the new Form 8038-TC, Information Return for

Tax Credit Bonds and Specified Tax Credit Bonds.

5 Bond issuers were required to file these information returns by the 15th day of the second calendar month after the close of the calendar quarter in which the bond was issued.

6 For Calendar Year 2009 data, see Barnes, Aaron, “Municipal Bonds, 2009,” Statistics of Income Bulletin, Fall 2011, Volume 31, Number 2.

7 In addition, for State income tax purposes, most States allow for the exclusion of interest on bonds issued by government agencies within their own States, thus increasing

the benefit to the bondholder.

8 The extent of exclusion of interest income can vary with taxpayer characteristics. For example, banks and insurance companies may be limited as to how much tax-exempt

interest they can exclude.

9 The interest exclusion for tax-exempt bonds is not allowed for arbitrage bonds or unregistered bonds. An arbitrage bond is one in which any portion of the proceeds is used

to purchase higher-yielding investments or to replace proceeds that have been used to purchase higher-yielding investments. Certain rules allow for arbitrage earnings with

respect to tax-exempt bonds within a specified period, as long as these earnings are rebated to the Department of the Treasury.

10 A registered bond is defined as “a bond whose owner is designated on records maintained by a registrar, the ownership of which cannot be transferred without the registrar

recording the transfer in its records,” according to the Municipal Securities Rulemaking Board’s Glossary of Municipal Securities Terms, http://www.msrb.org/msrbl/glossary/.

See also IRC section 149(a) for additional information.

11 Section 141(a) of the Internal Revenue Code (IRC) provides that the term private activity bond means any bond issued as part of an issue that meets: 1) the private business

tests set forth in the IRC section 141(b); or 2) the private loan financing test set forth in IRC section 141(c). The private business tests of IRC section 141(b) define a bond as a

private activity bond if both of the following criteria are met: 1) more than 10 percent of the bond proceeds are used for a private business purpose; and 2) more than 10 percent

of the bond debt service is derived from private business use and is secured by privately used property. The private loan-financing test of IRC section 141(c) defines a bond as

a private activity bond if the amount of proceeds used to (directly or indirectly) finance loans to nongovernmental persons exceeds the lesser of $5 million or 5 percent of the

proceeds.

12 Tax-exempt private activity bonds include exempt facility bonds, qualified mortgage bonds, qualified veterans’ mortgage bonds, qualified small issue bonds, qualified student

loan bonds, qualified redevelopment bonds, and qualified section 501(c)(3) bonds, all of which are defined in the “Explanation of Terms” section of this article. Examples of

exempt facilities include airports; docks and wharves; sewage facilities; solid waste disposal facilities; qualified residential rental projects; and facilities for the local furnishing

of electricity or gas. Qualified section 501(c)(3) bonds are issued by State and local governments to finance the activities of charitable and similar organizations that are tax

exempt under IRC section 501(c)(3). The primary beneficiaries of these bonds are hospitals, universities, and organizations that provide low-income housing or assisted living

facilities.

13 The interest income from qualified private activity bonds (other than qualified section 501(c)(3) bonds) is considered a tax preference for the alternative minimum tax

calculations.

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Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

governmental bonds are issued as tax anticipation notes

(TANs), revenue anticipation notes (RANs), or bond

anticipation notes (BANs). TANs and RANs generally

mature within 1 year of issuance, at which time the proceeds are paid from specific tax receipts or other revenue

sources. The proceeds of a BAN are typically used to

pay for start-up costs associated with a future long-term,

bond-financed project. A renewal BAN can be issued on

maturity of an outstanding BAN until, eventually, the

proceeds of the future bond issue are used to pay off or

retire the outstanding BAN. BANs, TANs, and RANs

accounted for almost $73.1 billion, nearly 24.9 percent

of the total governmental bond proceeds for 2010. Shortterm private activity bond proceeds totaled more than

$3.4 billion, only 2.7 percent of the total private activity

bond proceeds for 2010.

Long-Term, Tax-Exempt Bond Volume, by Type

of Issue

Total bond issuance is composed of both nonrefunding

(“new money”) issues and refunding issues. Proceeds

from new money issues finance new capital projects,

while proceeds from refunding issues retire outstanding

debt of prior bond issues. A bond issue can include both

new and refunding proceeds.

Figures B and C show total long-term issuance, as

well as its distribution between new money and refunding proceeds for both governmental and tax-exempt

private activity bonds issued between 2006 and 2010.

In 2010, some 43.5 percent of all long-term governmental bond proceeds were new money issues (Figure B).

Proceeds from new money government bonds decreased

Figure B

Volume of Long-Term, Tax-Exempt Governmental Bonds Issued, by Type and Issue Year, 2006-2010

Billions of dollars

350

300

$316.3

$272.2

$271.7

$262.4

250

$217.3

200

$200.1

150

100

$153.8

$180.2

$151.1

$122.6

$92.1

$116.1

$117.9

$111.4

2006

2007

2008

2009

Issue year

All issues

NOTE: Detail may not add to totals because of rounding.

114

New money proceeds

Refunding proceeds

$94.6

2010

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Figure C

Volume of Long-Term, Tax-Exempt Private Activity Bonds Issued, by Type and Issue Year, 2006–2010

Billions of dollars

160

$136.6

140

120

$132.8

$123.6

$108.6

$102.8

100

$86.6

$63.3

$80.3

$52.2

$45.3

$60.3

$52.5

$50 0

$50.0

$50.6

2006

2007

2008

2009

2010

Issue year

All issues

New money proceeds

37.4 percent, from $151.1 billion in 2009 to $94.6 billion in 2010, a 44.7-percent decline from the preceding

4-year average of $171.3 billion. Refunding governmental bond proceeds increased 10.1 percent, from $111.4

billion in 2009 to $122.6 billion in 2010, an approximate

12.1-percent increase from the preceding 4-year average of $109.4 billion.14 This is the first time since 1993

that States issued more long-term governmental bond

refunding proceeds than new money proceeds. A low

interest rate environment, combined with the availability

of direct payment bonds, are possible reasons for issuing

more long-term governmental bond proceeds for refunding issues than for new money issues.

For 2010, some 51.5 percent of all long-term private

activity bond proceeds were new money issues (Figure

C). New money private activity bond proceeds increased

21.9 percent from $52.2 billion in 2009 to $63.3 billion

in 2010; however, new money proceeds were 0.5 percent

lower than the preceding 4-year average of $63.7 billion.

Refunding private activity bond proceeds increased 19.2

Refunding proceeds

percent from $50.6 billion in 2009 to $60.3 billion in

2010, some 6.6 percent higher than the preceding 4-year

average of $56.6 billion.

Long-Term, Tax-Exempt Bond Volume, by

Selected Purpose

Figures D and E present the composition of long-term,

tax-exempt bond proceeds for both governmental and

private activity bond issues, by selected purpose and type

of issue. During 2010, more than half (55.1 percent) of

the total $217.3 billion in long-term, governmental bond

proceeds financed education, utilities, and transportation projects. Nearly one-third (33.2 percent) of these

proceeds were used for “other bond purposes.” Proceeds

used for other bond purposes may contain issues that

were not separately allocated by the issuer, or issues not

applicable to any of the purposes listed on Form 8038-G.

Issuers of governmental bonds for education, utilities,

and other purposes used more proceeds to refund prior

issues than to finance new capital projects. Conversely,

Additional tax-exempt bond data, including data for prior years, can be found on SOI’s Tax Stats Web pages: http://www.irs.gov/taxstats. Click on “Tax-Exempt Bonds.”

115

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Figure D

Long-Term, Tax-Exempt Governmental Bonds, by Selected Bond Purpose and Type of Issue, 2010

Billions of dollars

$41.2

$30.5

$25.6

$14.4

$30.9

$21.7

Other purposes

[1]

Education

$12.6

$15 0

$15.0

Utilities

Transportation

$6.0

$7.7

Environment

$2 4

$2.4

$2.8

Public safety

$1.8

Health and

hospital

Bond purpose

New money proceeds

Refunding proceeds

[1] "Other purposes" refer to obligations for which a specific purpose either did not apply or was not clearly indicated on Form 8038-G. It does not include

specific purposes, such as housing and bond and tax/revenue anticipation notes, that are not shown separately in the figure. See Table 2.

issuers of governmental bonds for transportation, environment, and public safety used more proceeds to finance

new capital projects than to refund prior bond issues

(Figure D). Only governmental bonds with proceeds used

for health and hospital projects spent an equal amount to

finance new capital projects and refund prior bond issues.

Qualified section 501(c)(3) bonds include total qualified hospital bonds and qualified nonhospital bonds

issued to benefit entities exempt from income tax under

IRC section 501(c)(3). Combined, these bonds accounted

for 49.3 percent of the $123.6 billion of long-term, private

activity bond proceeds for 2010 (Figure E). For almost all

private activity bond purposes shown in Figure E, more

proceeds were spent financing new capital projects than

refunding prior bond issues, with the exceptions of qualified hospital and water, sewage, and solid waste disposal.

See Internal Revenue Notice 2009-50 for additional information.

IRC section 144(c)(6)(b) requires that proceeds may not be used for any private or commercial golf course, country club, massage parlor, hot tub facility, suntan facility,

racetrack or other facility used for gambling, or any store whose principal business is the sale of alcoholic beverages for consumption on the premises.

116

The American Recovery and Reinvestment Act of

2009 (ARRA) added IRC section 1400U-3, which authorized the issuance of tax-exempt recovery zone exempt

facility bonds. These are private activity bonds issued

by State and local governments to finance qualified projects located in “recovery zones.” A recovery zone is an

area that has significant poverty, unemployment, home

foreclosure rates, general distress, or distress from the

closure of a military installation. It also includes those

areas designated as an empowerment zone or renewal

community.15 Qualified projects include any trade or

business except those used for residential real estate,

and any trade or business under IRC 144(c)(6)(B).16 For

2010, there were 427 recovery zone exempt facility bonds

issued for a total of $6.3 billion in long-term, new money

proceeds.

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Figure E

Long-Term, Tax-Exempt Private Activity Bonds, by Selected Bond Purpose and Type of

Issue, 2010

Billions of dollars

$15.4

$17.7

$6.7

$16.2

$11.7

Qualified section

501(c)(3)

nonhospital

Qualified

hospital

$3.1

$8.0

$4.1

$4.3

Airport

Qualified

mortgage

$6.3

$2.7

Water, sewage,

and solid waste

disposal

$2.2

$3.5

Recovery zone

Qualified

facility bonds residential rental

Bond purpose

New money proceeds

Overview of Tax-Exempt Bond Issues, by State

Figure F presents States with the largest absolute decreases

and increases in the amount of new money long-term, taxexempt governmental bonds. Total proceeds for this type

of bond decreased $56.4 billion (37.3 percent) from 2009

to 2010, falling to $94.6 billion. Issuances in California and

New York fell 48 percent and 59.6 percent, respectively, and

these States experienced the largest absolute decreases in

these bond proceeds. Texas experienced a decrease (40.5

percent) in this type of governmental bond proceeds during

the year. In all, from 2009 to 2010, new money long-term

governmental bond proceeds decreased in 40 States by

nearly $60.2 billion.

Florida experienced the largest absolute increase

(16.8 percent) in new money long-term governmental

bond proceeds from 2009 to 2010. Other States with

significant increases included U.S. Possessions (up 60

Refunding proceeds

percent), Oklahoma (up 18.9 percent), and Louisiana (up

24.3 percent). In all, from 2009 to 2010, new money longterm governmental bond proceeds increased in 12 States

by slightly more than $3.7 billion.

Figure G presents the amount of governmental bond

proceeds for the top 15 States, in terms of total dollar

volume of new money long-term, tax-exempt bonds

issued for 2010. Combined, these States accounted for

71.9 percent of the total $94.6 billion of new money

long-term governmental bond proceeds for the year.

About $42.7 billion (45.1 percent) of the total proceeds

were issued by authorities in the following five States:

California (15.3 percent), Texas (9.1 percent), Florida (8.9

percent), New York (7 percent), and Pennsylvania (4.8

percent). Together, according to 2010 Census estimates,

these five States accounted for almost 34.6 percent of the

total U.S. population.17

The resident population estimates for July 1, 2010, were produced by the U.S. Bureau of the Census.

117

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Figure F

States with Largest Decreases and Increases in Amount of New Money Long-Term, Tax-Exempt

Governmental Bonds, 2009–2010

[Money amounts are in millions of dollars]

State of issue

2009

amount

2010

amount

(1)

(2)

All States

Change in amount

Percentage change

in amount

(3)

(4)

151,050

94,644

-56,406

-37.3

California

27,872

14,502

-13,370

-48.0

New York

16,364

6,612

-9,752

-59.6

Texas

14,512

8,630

-5,882

-40.5

States with decreases:

Connecticut

3,453

1,160

-2,293

-66.4

Virginia

3,740

1,599

-2,141

-57.2

Florida

7,224

8,436

1,212

16.8

U.S. Possessions [1]

1,966

3,145

1,179

60.0

Oklahoma

1,605

1,909

304

18.9

Louisiana

1,239

1,540

301

24.3

177

380

203

114.7

States with increases:

New Hampshire

[1] U.S. Possessions include Guam, Puerto Rico, and the U.S. Virgin Islands.

NOTE: Detail may not add to totals because of rounding.

Figure G

New Money Long-Term, Tax-Exempt Governmental Bonds, by Selected Bond Purpose, for Top 15

States, Ranked by Total Tax-Exempt Governmental Bond Issuance, 2010

[Money amounts are in millions of dollars]

Total

State of issue

Other purposes [1]

Education

Transportation

Utilities

Environment

Amount

Percent of

State total

Amount

Percent of

State total

Amount

Percent of

State total

Amount

Percent of

State total

Amount

Percent of

State total

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

94,644

30,939

32.7

21,682

22.9

14,962

15.8

12,596

13.3

7,679

8.1

California

14,502

1,660

11.4

4,010

27.7

2,726

18.8

2,897

20.0

1,408

9.7

Texas

8,630

2,211

25.6

3,243

37.6

570

6.6

2,194

25.4

194

2.2

Florida

8,436

4,138

49.1

897

10.6

1,711

20.3

1,148

13.6

447

5.3

New York

6,612

3,218

48.7

1,071

16.2

1,645

24.9

119

1.8

1.5

Pennsylvania

4,529

847

18.7

1,356

29.9

633

14.0

498

11.0

829

18.3

All States

118

Selected bond purpose

Illinois

3,709

2,241

60.4

789

21.3

511

13.8

0.9

Arizona

3,227

1,703

52.8

342

10.6

693

21.5

405

12.6

U.S. Possessions [2]

3,145

2,449

77.9

Washington

2,655

1,171

44.1

393

14.8

2.5

333

12.5

461

17.4

New Jersey

2,336

578

24.7

529

22.6

673

28.8

3.9

355

15.2

North Carolina

2,295

1,053

45.9

595

25.9

168

7.3

114

5.0

1.4

Minnesota

2,166

1,096

50.6

281

13.0

355

16.4

244

11.3

4.0

Georgia

2,091

456

21.8

322

15.4

958

45.8

216

10.3

Oklahoma

1,909

163

8.5

976

51.1

250

13.1

397

20.8

Iowa

1,809

568

31.4

719

39.7

3.9

4.6

129

7.1

d—Data deleted to avoid disclosure of information about specific bonds. However, the data are included in the appropriate totals.

[1] For purposes of this figure, "other purposes" refers to obligations for which a specific purpose either did not apply or was not clearly indicated on the Form 8038-G. It does not

include specific purposes, such as public safety and housing, that are not shown separately in the figure. See Table 1.

[2] U.S. Possessions include Guam, Puerto Rico, and the U.S. Virgin Islands.

NOTE: Detail may not add to totals because of rounding.

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

An examination of issuance by State reveals some

differences in the allocation of proceeds by bond purpose. Overall, for 2010, some 22.9 percent of the $94.6

billion of new money long-term governmental bonds was

issued for educational purposes. However, of the total

amount for these bonds issued in Oklahoma, 51.1 percent was issued for education. In contrast, 10.6 percent

of long-term governmental bonds issued in both Florida

and Arizona was for this purpose.

Transportation projects accounted for 15.8 percent

of States’ total new money long-term proceeds. In New

Jersey, however, 28.8 percent of the total amount of new

money long-term governmental bonds was for transportation, while in Iowa, only 3.9 percent was allocated for

the same purpose. Transportation bonds accounted for

only 2.5 percent of Washington’s total amount of new

money long-term bond issues.

Utility bond proceeds accounted for 13.3 percent of

all new money long-term governmental bonds in 2010.

Georgia and Texas each spent a large portion of their

total allocation on utility projects, 45.8 percent and 25.4

percent, respectively. In contrast, New York allocated

1.8 percent of its total amount of new money long-term

bonds to utility projects.

Figure H presents States with the largest absolute

decreases and increases in the amount of new money

long-term, tax-exempt private activity bonds from 2009

to 2010. Total new money long-term, tax-exempt private

activity bond proceeds increased by approximately $11.1

billion (21.3 percent). New York experienced the largest

absolute decrease (34.2 percent) in these bond proceeds

in 2010. States with significant relative decreases in new

money long-term, tax-exempt private activity bonds included California (down 17.7 percent), Illinois (down 14.6

percent), and New Mexico (down 79.9 percent). For the

17 States that reduced their issuance of these types of

bonds in 2010, the overall reduction in proceeds totaled

$6.1 billion.

Louisiana experienced the largest relative increase

(277.6 percent) in new money long-term, tax-exempt private activity bond proceeds, which was due to increases

in Qualified Gulf Opportunity Zone exempt facility

bonds and Gulf Opportunity Zone mortgage bonds.18

From 2009 to 2010, other States with significant increases

in these types of bond issues included Texas (up 90.7

percent) and Florida (up 97 percent). In all, new money

long-term, tax-exempt private activity bond proceeds increased in 35 States by just less than $17.2 billion.

Figure H

States with Largest Decreases and Increases in Amount of New Money Long-Term, Tax-Exempt Private

Activity Bonds, 2009–2010

[Money amounts are in millions of dollars]

State of issue

All States

2009

amount

2010

amount

Change in

amount

Percentage change in

amount

(1)

(2)

(3)

(4)

52,216

63,330

11,114

21.3

States with decreases:

New York

7,582

4,990

-2,592

-34.2

California

7,389

6,082

-1,307

-17.7

Illinois

3,007

2,567

-440

-14.6

Indiana

1,162

774

-388

-33.4

462

-369

-79.9

New Mexico

States with increases:

Louisiana

941

3,553

2,612

277.6

Texas

2,620

4,997

2,377

90.7

Florida

2,102

4,141

2,039

97.0

Mississippi

517

1,605

1,088

210.4

Georgia

1,014

1,852

838

82.6

NOTE: Detail may not add to totals because of rounding.

18 The Gulf Opportunity Zone Act of 2005, signed into law as Public Law 109-135 on December 21, 2005, authorized a new category of tax-exempt bonds. The proceeds

of such bonds are used to finance the construction and rehabilitation of certain residential and nonresidential property located in certain localities of Alabama, Louisiana,

and Mississippi, designated as the “Gulf Opportunity Zone.” This area constitutes the portion of the Hurricane Katrina disaster area, determined by the President to warrant

individual or individual and public assistance from the Federal government, under the Robert T. Stafford Disaster Relief and Emergency Assistance Act.

119

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Figure I

New Money Long-Term, Tax-Exempt Private Activity Bond Proceeds, by Selected Bond Purpose, for Top

15 States, Ranked by Total Tax-Exempt Private Activity Bond Issuance, 2010

[Money amounts are in millions of dollars]

Selected bond purpose

Total

proceeds

State of issue

Qualified section

501(c)(3) nonhospital

Airports, docks, and

wharves [1]

Qualified hospital

Recovery zone exempt

facility bonds

Qualified mortgage

Amount

Percent of

State total

Amount

Percent of

State total

Amount

Percent of

State total

Amount

Percent of

State total

Amount

Percent of

State total

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

63,330

16,202

25.6

11,710

18.5

8,794

13.9

6,267

9.9

4,295

6.8

California

6,082

1,526

25.1

349

5.7

2,568

42.2

559

9.2

Texas

4,997

1,112

22.3

790

15.8

783

15.7

New York

4,990

1,649

33.0

504

10.1

470

9.4

209

4.2

10.6

All States

Florida

4,141

955

23.1

460

11.1

983

23.7

194

4.7

439

Louisiana

3,553

325

9.1

0.5

Pennsylvania

2,733

913

33.4

864

31.6

3.1

Illinois

2,567

1,022

39.8

531

20.7

111

4.3

459

17.9

Massachusetts

2,442

1,085

44.4

520

21.3

269

11.0

Ohio

2,276

456

20.0

829

36.4

488

21.4

Georgia

1,852

327

17.7

450

24.3

239

12.9

New Jersey

1,685

766

45.5

393

23.3

110

6.5

Virginia

1,618

386

23.9

378

23.4

133

8.2

Mississippi

1,605

1.2

Minnesota

1,240

553

44.6

103

8.3

134

10.8

North Carolina

1,226

531

43.3

0.0

384

31.3

d—Data deleted to avoid disclosure of information about specific bonds. However, the data are included in the appropriate totals.

[1] For purposes of this figure, certain bond purposes were combined. The data here will differ slightly from the the data in Tables 7 and 9.

NOTE: Detail may not add to totals because of rounding.

Figure I shows the amount of bond proceeds for

the top 15 States, in terms of total dollar volume of new

money long-term, tax-exempt private activity bonds

issued for 2010. Combined, these States accounted for

67.9 percent of the total $63.3 billion of new money longterm, tax-exempt private activity bond proceeds for the

year. Almost $23.8 billion (37.5 percent) of the total

proceeds was issued by authorities in the following five

States: California (9.6 percent), Texas (7.9 percent), New

York (7.9 percent), Florida (6.5 percent), and Louisiana

(5.6 percent). Together, according to 2010 Census estimates, these five States accounted for almost 34.1 percent

of the total U.S. population.

Similar to governmental bond issuance, there were

differences among the States in the composition of total

new money long-term, tax-exempt private activity bond

issuance, by purpose. Examining the bond allocations

by purpose for 2010 overall, 25.6 percent of this type of

proceed was for qualified IRC section 501(c)(3) nonhos120

pital organizations; another 18.5 percent was issued for

qualified hospital bonds.

Of the total amount of new money long-term, taxexempt private activity bond proceeds raised in New

Jersey, 45.5 percent was issued for IRC section 501(c)(3)

nonhospital organizations, compared to 9.1 percent in

Louisiana and 1.2 percent in Mississippi. Qualified hospital bonds accounted for 43.3 percent of North Carolina’s

new money long-term, tax-exempt private activity bond

proceeds, compared to 10.1 percent and 8.3 percent for

New York and Minnesota, respectively. Of the top 15

States, California had the smallest total issuance for qualified hospitals, with only 5.7 percent of its total proceeds

allocated for this purpose.

Bonds issued for airports, docks, and wharves accounted for 13.9 percent of all new money long-term,

tax-exempt private activity bond proceeds in 2010, totaling $8.8 billion. California committed 42.2 percent of

its total new money long-term private activity bond pro-

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

ceeds toward airports, docks, and wharves, while Florida

allocated 23.7 percent for this purpose.

Together, States allocated 9.9 percent of the $63.3

billion of new money long-term, tax-exempt private activity bonds in 2010 for recovery zone exempt facility

bonds, which allow State and local governments to issue

tax-exempt bonds for projects located in areas designated

as “recovery zone property.”19 As previously mentioned,

recovery zones are areas having significant poverty, unemployment, home foreclosure rates, general distress,

or distress from the closure of a military installation,

or those areas designated as an empowerment zone or

renewal community. North Carolina and Ohio directed

a much larger share of their total new money long-term

proceeds to this purpose, 31.3 percent and 21.4 percent,

respectively. In contrast, Louisiana directed only 0.5

percent of its new money long-term bond proceeds to

recovery zone exempt facility bonds.

Tax Credit Bonds

Tax credit bonds differ from tax-exempt bonds in that

they are not explicitly interest-bearing obligations. In

lieu of or in addition to receiving periodic interest payments from the issuer, a bondholder is generally allowed

an income tax credit while the bond is outstanding. The

amount of the credit is determined by multiplying the

bond’s subsidy rate times the credit rate and face amount

on the holder’s bond. The credit rate on the bonds is determined by the Secretary of the Treasury and is an estimate of the rate that permits issuance of such bonds

without discount and interest cost to the qualified issuer.

The credit is includable in the bondholder’s gross income

(as if it were an interest payment on the bond) and can be

claimed against regular income tax liability and alternative minimum tax liability.

The Taxpayer Relief Act of 1997 created the first type

of tax credit bond—the qualified zone academy bond.

In 2005, two additional types—clean renewable energy

bonds and Gulf tax credit bonds—were created. Since

then, various legislation has authorized additional types

of tax credit bonds, such as qualified forestry conservation bonds, new clean renewable energy bonds, qualified

energy conservation bonds, Midwestern tax credit bonds,

and qualified school construction bonds.20,21 Issuers

of tax credit bonds are required to file Form 8038-TC,

Information Return for Tax Credit Bonds and Specified

Tax Credit Bonds. ARRA included several provisions

that affected tax credit bonds. Most notably, the Act authorized the issuance of qualified school construction

bonds, the proceeds of which finance the construction,

rehabilitation, or repair of a public school facility or the

purchase of land on which a public school facility shall

be built.22 ARRA also created tax credit Build America

Bonds, which could be issued for any purpose traditionally funded with tax-exempt governmental bonds and

subject to the same restrictions that apply to tax-exempt

governmental bonds under IRC section 103. Tax credit

Build America Bonds are interest-bearing obligations,

which differentiates them from traditional tax credit

bonds that provide bondholders a tax credit in lieu of any

interest payment. ARRA also amended various IRC sections to modify volume cap provisions for several types

of existing tax credit bonds.

The Hiring Incentives to Restore Employment Act

of 2010 (HIRE) enacted on March 18, 2010, extended

direct payment provisions to certain issuers of qualified

tax credit bonds under IRC section 6431(f).23 Once an

issuer elected to apply section 6431(f), the qualified tax

credit bond became a “specified tax credit bond,” which

is a direct payment bond. In lieu of issuing bonds with a

tax credit to the bondholder, issuers of new clean renewable energy bonds, qualified energy conservation bonds,

qualified zone academy bonds, and qualified school construction bonds could elect to receive a Federal direct

payment subsidy equal to a certain percentage of their

borrowing costs. Specifically, issuers of qualified school

construction bonds and qualified zone academy bonds

could receive the lesser of 100 percent (70 percent for

new clean renewable energy bonds and qualified energy

conservation bonds) of their interest payment or the

amount of interest that would have been paid if the interest rate was determined at the tax credit bond rate.

Once an issuer elects to apply for the direct payment

subsidy under IRC section 6431(f), it is irrevocable, and

the qualified tax credit bond is regarded as a specified

tax credit bond. Data on specified tax credit bonds are

presented in the discussion of direct payment bonds in

the next section of this article.

Recovery zone exempt facility bonds were created under ARRA, IRC section 1400U-3. Recovery zone exempt facility bonds are subject to volume cap restrictions and had

to be issued before January 1, 2011.

20 The Food, Conservation, and Energy Act of 2008 created qualified forestry conservation bonds. The Energy Improvement and Extension Act of 2008 produced new clean

renewable energy bonds and qualified energy conservation bonds. The Tax Extenders and Alternative Minimum Tax Relief Act of 2008 created Midwestern tax credit bonds.

21 Different categories of tax credit bonds vary in terms of the allowable tax credit rate, maturity, and other features. For example, clean renewable energy bonds and qualified

zone academy bonds have a 100-percent tax credit subsidy; however, new clean renewable energy bonds and qualified energy conservation bonds have a 70-percent subsidy.

Borrowers are likely to offer these issues at a discount or pay taxable interest in addition to the tax credit received by the lender.

22 See Internal Revenue Notice 2010-17 for current information on qualified school construction bonds.

23 IRC section 54(A)(d)(1) states that the term “qualified tax credit bond” means—(a) a qualified forestry conservation bond, (b) a new clean renewable energy bond, (c) a

qualified energy conservation bond, (d) a qualified zone academy bond, or (e) a qualified school construction bond.

121

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Figure J

Direct Payment Bonds

Tax Credit Bonds, by Issue Type, 2010

[Money amounts are in millions of dollars]

Type of bond

Tax credit bonds [2]

Number

Total [1]

Amount

199

1,084

Qualified school construction bonds

134

879

Qualified zone academy bonds

163

All other tax credit bonds, combined [3]

[1] Includes bonds reported on Form 8038, Form 8038-B, and Form 8038-TC with a

specific reference to "qualified school construction" bonds, "qualified zone academy"

bonds, "new clean renewable energy" bonds, "qualified energy conservation" bonds, or

"Build America Bond tax credit" bonds in either their issue name or other description.

Excludes bonds reported on Form 8038 and Form 8038-TC that indicate the issuer

elected to apply section 6431(f) to receive a refundable credit in lieu of tax credits under

section 54(A).

[2] Includes tax credit bonds reported on Form 8038-TC, Information Return for Tax

Credit Bonds and Specified Tax Credit Bonds , Form 8038, Information Return for TaxExempt Private Activity Bond Issues, and Form 8038-B, Information Return for Build

America Bonds and Recovery Zone Economic Development Bonds, with a reference to

"new clean renewable energy" bond, "qualified energy conservation" bond, "qualified

zone academy" bond, "qualified school construction" bond, or "Build America Bond tax

credit" bonds in the issue name or the description field for other issue type.

[3] For purposes of this figure, this category includes tax credit bonds issued for new

clean renewable energy bonds, qualified energy conservation bonds, and Build America

Bond tax credits in order to avoid disclosure of information about specific bonds.

There were nearly $1.1 billion in tax credit bond

proceeds in 2010, representing a 70.9-percent decrease

from the $3.7 billion issued in 2009 (Figure J). Qualified

school construction bond proceeds totaled $879 million,

equaling roughly 81.1 percent of the entire tax credit

bond market. Qualified zone academy bonds accounted

for 15 percent of all tax credit bonds issued in 2010, with

proceeds totaling $163 million. All other tax credit bonds

combined, which include new clean renewable energy

bonds, qualified energy conservation bonds, and tax

credit “Build America Bond,” accounted for another $42

million in total tax credit bond proceeds in 2010.

The top five States with the highest dollar issuance

of tax credit bonds were Texas, Indiana, Minnesota,

California, and New York (Figure K). Combined, these

States issued $551 million (50.8 percent) of all tax credit

bonds. Texas issued the largest amount of tax credit

bonds, accounting for $211 million (19.5 percent) of the

total. Indiana and Minnesota had similar amounts of tax

credit bond issuance, with $98 million (9 percent) and

$95 million (8.8 percent), respectively.

Figure K

Tax Credit Bonds, for All States and Top Five

States, 2010

[Money amounts are in millions of dollars]

Total tax credit bonds [1]

State of issue

Number

Amount

Percentage

of total

amount

Rank

(1)

(2)

(3)

(4)

199

1,084

100.0

N/A

Top five States, total

551

50.8

N/A

Texas

211

19.5

Indiana

9.0

Minnesota

8.8

California

7.0

New York

6.5

All States

N/A—Not applicable. Rank applies only to individual States.

[1] Combines tax credit bonds reported on Form 8038-TC, Information Return for Tax

Credit Bonds and Specified Tax Credit Bonds. Data also combines tax credit bonds

reported on Form 8038, Information Return for Tax-Exempt Private Activity Bond

Issues, and Form 8038-B, Information Return for Build America Bonds and Recovery

Zone Economic Development Bonds, with a reference to "new clean renewable

energy" bond, "qualified energy conservation" bond, "qualified zone academy" bond,

"qualified school construction" bond, or "Build America Bond tax credit" bonds in the

issue name or the description field for other issue type.

NOTE: Detail may not add to totals because of rounding.

For additional information regarding ARRA provisions affecting tax credit bonds, see Barnes, Aaron, “Tax-Exempt Bonds, 2009,” Statistics of Income Bulletin, Fall 2011,

Volume 31, Number 2.

Internal Revenue Notice 2010-35 states, “Section 301 of the Hiring Incentives to Restore Employment Act, Pub. L. No. 111-147, 124 Stat. 71 (2010) (the “HIRE Act”) added

subsection (f) to section 6431 of the Code, which authorizes issuers to irrevocably elect to receive Federal direct payments of allowances of refundable tax credits to subsidize

a prescribed portion of their borrowing costs instead of the Federal tax credits that otherwise would be allowed to holders of certain qualified tax credit bonds under section

54A. For more information regarding the HIRE Act see Internal Revenue Notice 2010-35.

122

In addition to the tax credit bonds discussed in the previous section, ARRA authorized direct payment bond issuance through the Build America Bonds (BAB) and the

Recovery Zone Economic Development Bond (RZED)

Programs.24 ARRA allows issuers of these bonds to elect

(in lieu of issuing tax-exempt bonds) to receive a direct

refundable credit payment from the Federal government

equal to a percentage of the interest payments made.

Issuers of Build America Bonds receive a credit payment equal to 35 percent of interest payable, and issuers

of recovery zone economic development bonds receive

a credit payment equal to 45 percent of interest payable.

As discussed previously, HIRE extended the direct pay

provision to certain issuers of qualified tax credit bonds.

In lieu of issuing bonds with a tax credit to the bondholder, issuers of specified tax credit bonds may elect to

receive a Federal direct payment on an interest payment

date equal to a certain percentage of the interest paid.25

Specified tax credit bondholders receive taxable interest

payments from the issuer instead of a tax credit.

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

For Calendar Year 2010, issuers of BABs and RZEDs

were required to file Form 8038-B, Information Return

for Build America Bonds and Recovery Zone Economic

Development Bonds, and issuers of specified tax credit

bonds were required to file Form 8038-TC, Information

Return for Tax Credit Bonds and Specified Tax Credit

Bonds. A direct payment bond issuer was required to

attach a debt service schedule with the following information: type of interest rate (variable or fixed), frequency

of interest payments, total principal outstanding on each

interest payment date, credit payment expected from the

IRS, and earliest call date of the bond.

Figure L shows direct payment bond issuance allowed under ARRA and HIRE for 2010. A total of 3,456

direct payment bonds raised more than $135.1 billion in

proceeds, more than double the amount of direct payment

bond proceeds for 2009 ($65.3 billion). Direct payment

bonds allowed under ARRA raised more than $126.2 billion and accounted for 93.4 percent of all direct payment

bonds issued in 2010. For 2010, the majority (88.9 percent)

of direct payment bonds were BABs; another 4.5 percent

was issued as recovery zone economic development bonds.

Figure L also shows the total specified tax credit

bond issuance allowed under HIRE. In total, 870 specified tax credit bonds raised nearly $8.9 billion in bond

proceeds and made up 6.6 percent of all direct payment

bonds issued in 2010. Qualified school construction

bonds made up 5.8 percent of total direct payment bond

proceeds, with slightly more than $7.8 billion issued in

2010. Qualified zone academy bonds, qualified energy

conservation bonds, and new clean renewable energy

bonds accounted for $332 million, $379 million, and

$371 million in proceeds, respectively. This suggests

that issuers preferred to issue specified tax credit bonds

over qualified tax credit bonds. Of the $10 billion in tax

credit bonds and specified tax credit bonds issued in

2010, slightly less than $8.9 billion (over 89.1 percent)

were specified tax credit bonds.

Figure L

Taxable Direct Payment Bonds Allowed Under the American Recovery and Reinvestment Act (ARRA)

and Specified Tax Credit Bonds Allowed Under the Hiring Incentives To Restore Employment Act

(HIRE), by Bond Type, 2010

[Money amounts are in millions of dollars]

Type of bond

Number

(1)

Total, taxable direct payment bonds [1]

Total, direct payment bonds allowed under the American Recovery and

Reinvestment Act (ARRA) [2]

Build America Bond direct payment

Recovery zone economic development bond direct payment

Total, specified tax credit bonds allowed under the Hiring Incentives To Restore

Employment Act (HIRE) [3]

3,456

Amount

Percentage

of total amount

(2)

(3)

135,127

100.0

2,586

126,230

93.4

2,037

120,098

88.9

549

6,131

4.5

870

8,897

6.6

Qualified school construction bonds

699

7,815

5.8

Qualified zone academy bonds

106

332

0.2

Qualified energy conservation bonds

379

0.3

New clean renewable energy bonds

371

0.3

[1] Includes bonds reported on Form 8038-B, Information Return for Build America Bonds and Recovery Zone Economic Development Bonds, as well as bonds reported on Form 8038G, Information Return for Tax-Exempt Governmental Obligations, with a specific reference to "Build America Bond direct payment" or "Recovery Zone Economic Development Bond" in

either their issue name or other description. Also includes bonds reported on Form 8038, Information Return for Tax-Exempt Private Activity Bond Issues, and Form 8038-TC,

Information Return for Tax Credit Bonds and Specified Tax Credit Bonds, that indicate the issuer elected to apply section 6431(f) to receive a refundable credit in lieu of tax credits under

section 54(A). Issuers who elect to apply section 6431(f) are eligible to receive Federal direct payments and are classified as "taxable direct payment bonds" for purposes of this figure.

Data exclude returns specifically referencing "Build America Bond tax credit" in either their issue name or other description.

[2] Includes bonds reported on Form 8038-B, as well as bonds reported on Form 8038-G with a specific reference to "Build America Bond direct payment" or "Recovery Zone Economic

Development Bond" in either their issue name or other description.

[3] Includes bonds reported on Form 8038 and Form 8038-TC that indicate the issuer elected to apply section 6431(f) to receive a refundable credit in lieu of tax credits under section

54(A).

NOTE: Detail may not add to totals because of rounding.

123

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Figure M shows direct payment bonds allowed under

ARRA, by selected purpose, for 2010. Education bonds

constituted 24.5 percent of total direct payment proceeds

with $30.9 billion, followed by transportation bonds,

which accounted for 23.3 percent of total proceeds, or

$29.4 billion. Other significant purposes included utilities

(19.9 percent) and environment (6.4 percent), with $25.1

billion and $8 billion in proceeds, respectively.

As shown in Figure N, 15 States accounted for nearly

$96.7 billion (76.6 percent) of total Build America Bond

and recovery zone economic development bond issuance.

The 2010 Census estimate for these 15 States, combined,

was 62.9 percent of the U.S. population. California had

$23.7 billion in bond issuance, which made it the single

largest issuer of direct-payment bonds allowable under

ARRA. Nearly 18.8 percent of all direct payment bonds

were issued in California, while its population represents

a little more than 12.1 percent of the U.S. population. New

York issued 58 direct payment bonds totaling slightly less

than $15.1 billion in proceeds, for an average of roughly

$260 million per bond issued. This was the largest average amount for any State and significantly larger than

Figure M

Taxable Direct Payment Bond Amounts Allowed Under the American Recovery and Reinvestment Act

(ARRA) as a Percentage of Total Proceeds, by Selected Purpose, 2010 [1]

[Money amounts are in billions of dollars]

Percentage

$30.9

$29.4

$25.1

$20.5

$8.0

$3.9

Education [2] Transportation

Utilities [3]

Other

purposes [4]

Environment

Health and

hospital

$3.0

$2.5

Public

Capital

infrastructure expenditures

and

related to

property

construction of

public facilities located in the

zone [5]

[5]

$2.3

Public safety

Bond purpose

[1] Includes bonds reported on Form 8038-B, Information Return for Build America Bonds and Recovery Zone Economic Development Bonds, as well as bonds

reported on Form 8038-G, Information Return for Tax-Exempt Governmental Obligations, with a specific reference to "Build

Build America Bond direct payment"

payment or "Recovery

Recovery

Zone Economic Development Bond" in either their issue name or other description. Data exclude returns specifically referencing "Build America Bond tax credit" in

either their issue name or other description.

[2] Includes bonds reported on Form 8038-B, as well as bonds reported on Form 8038-G with a specific reference to "Education" or "School" in either their issue name

or other description.

[3] Includes bonds reported on Form 8038-B, as well as bonds reported on Form 8038-G with a specific reference to "Utility" in either their issue name or other

description.

[4] "Other purposes" refer to build America bonds and recovery zone economic development bonds for which a specific purpose either did not apply or was not clearly

indicated on the Form 8038-G or Form 8038-B. Data combines recovery zone economic development bonds reported for "other purposes" and "job training and

educational programs" to avoid disclosure of specific bonds.

[5] Purposes are for recovery zone economic development bonds filing Form 8038-B.

124

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Figure N

Taxable Direct Payment Bonds Allowed Under the American Recovery and Reinvestment Act

(ARRA), for All States and Top 15 States, 2010

[Money amounts are in millions of dollars]

All issues [1]

State of issue

Number

(1)

All States

2,586

Top 15 States, total

Amount

of proceeds

Percentage

of total amount

Rank

(2)

(3)

(4)

126,230

100.0

N/A

1,236

96,683

76.6

N/A

California

127

23,716

18.8

New York

15,055

11.9

Texas

9,809

7.8

Illinois

225

8,091

6.4

Ohio

144

6,803

5.4

New Jersey

5,269

4.2

Washington

4,372

3.5

Florida

3,763

3.0

Pennsylvania

3,706

2.9

Georgia

3,416

2.7

Massachusetts

2,902

2.3

Virginia

2,701

2.1

Colorado

2,622

2.1

Missouri

161

2,284

1.8

Maryland

2,174

1.7

N/A—Not applicable. Rank applies only to individual states.

[1] Includes bonds reported on Form 8038-B, Information Return for Build America Bonds and Recovery Zone Economic Development Bonds, as well as bonds reported on

Form 8038-G, Information Return for Tax-Exempt Governmental Obligations, with a specific reference to "Build America Bond direct payment" or "Recovery Zone Economic

Development Bond" in either their issue name or other description. Data exclude returns specifically referencing "Build America Bond tax credit" in either their issue name or

other description.

the national average of $48.8 million per direct payment

issued. New York bond proceeds were 11.9 percent of

the national total, a percentage greater than its share of

the U.S. population (6.3 percent). Texas had $9.8 billion

(7.8 percent) in direct bond issuance in 2010, making it

the third largest issuer of direct payment bonds allowable

under ARRA.

Figure O shows 10 States accounted for almost $5.2

billion (58 percent) of the $8.9 billion in total direct payment bond issuance allowable under HIRE (specified

tax credit bonds) for 2010. The 2010 Census estimate

for these 10 States, combined, was 51.9 percent of the

U.S. population. California had just shy of $1.1 billion in

bond issuance, which made it the single largest issuer of

specified tax credit bonds. Florida and Michigan issued

$732 million (8.2 percent) and $581 million (6.5 percent)

of all specified tax credit bonds, but their populations

represent 6.1 percent and 3.2 percent of the U.S. population, respectively. New York had $562 million (6.3 percent) while only issuing 6 specified tax credit bonds in

2010, averaging nearly $93.7 million per bond issued,

again the largest average issue amount for any State and

significantly higher than the national average of $10.2

million per bond issued.

Direct payment bond issuers are required to file

Form 8038-CP, Return for Credit Payments to Issuers

of Qualified Bonds, to request credit payments. Issuers

requested 3,116 credit payments totaling more than $1.8

billion for interest payments made to holders of direct

payment bonds during 2010 (Figure P).26 There were

Form 8038-CP, Return for Credit Payment to Issuers of Qualified Bonds, is used by issuers of Build America Bonds, recovery zone economic development bonds, and

specified tax credit bonds who elect to receive a direct payment from the Federal Government equal to a percentage of the interest payments on these bonds. Specifically,

issuers of Build America Bonds receive a credit payment equal to 35 percent of interest payable, and issuers of recovery zone economic development bonds receive a credit

payment equal to 45 percent of interest payable. For specified tax credit bonds the amount of refundable credit payments for qualified zone academy bonds and qualified school

construction bonds is the lesser of 100 percent of the interest payable or 100 percent of the amount of interest determined at the applicable tax credit rate under 54A(b)(3). The

amount of refundable credit payments for new clean renewable energy bonds and qualified energy conservation bonds is the lesser of 70 percent of the interest payable or 70

percent of the amount of interest determined at the applicable tax credit rate under 54A(b)(3).

125

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Figure O

Specified Tax Credit Bonds Allowed Under the Hiring Incentives To Restore Employment Act (HIRE),

for All States and Top 10 States, 2010

[Money amounts are in millions of dollars]

Total specified tax credit bonds [1]

State of issue

Number

Amount

Percentage

of total amount

Rank

(1)

(2)

(3)

(4)

All States

870

8,897

100.0

N/A

304

5,163

58.0

N/A

California

1,083

12.2

Florida

732

8.2

Michigan

581

6.5

Top 10 States, total

New York

562

6.3

Ohio

556

6.2

Pennsylvania

455

5.1

Texas

352

4.0

Illinois

330

3.7

Washington

273

3.1

Missouri

239

2.7

N/A—Not applicable. Rank applies only to individual States.

[1] Includes bonds reported on Form 8038-TC, Information Return for Tax Credit Bonds and Specified Tax Credit Bonds, and Form 8038, Information Return for Tax-Exempt Private

Activity Bond Issues, that indicate the issuer elected to apply section 6431(f) to receive a refundable credit in lieu of tax credits under section 54(A). Issuers who elect to apply section

6431(f) are eligible to receive Federal direct payments and are classified as "specified tax credit bonds" for purposes of this figure.

2,658 Forms 8038-CP filed for direct payment bonds allowable under ARRA, accounting for almost all of the

total credit payments requested. Build America Bond issuers accounted for 95.8 percent of all credit payments

requested for interest paid to bondholders in 2010. An additional $32 million in credit payments were requested by

issuers of recovery zone economic development bonds.

Issuers of direct payment bonds allowable under HIRE

filed 458 Forms 8038-CP and requested $45 million in

credit payments. Issuers of qualified school construction

bonds filed 374 Forms 8038-CP and requested $44 million in credit payments.

Summary

126

The American Recovery and Reinvestment Act of 2009

and The Hiring Incentives To Restore Employment Act

of 2010 temporarily expanded municipal bond financing

options by introducing direct payment bonds through

the Build America Bond, the recovery zone economic

development bond, and specified tax credit bond programs. More than 3,456 direct payment bonds raised

$135.1 billion in proceeds in 2010. The Build America

Bond program raised slightly less than $84.9 billion for

education, transportation, and utilities purposes in 2010

before it expired on December 31, 2010. The provisions

of HIRE allowed issuers of qualified school construction

bonds, qualified zone academy bonds, qualified energy

conservation bonds, and new clean renewable energy

bonds to make an irrevocable election to issue direct

payment bonds in the form of specified tax credit bonds.

For 2010, specified tax credit bonds raised nearly $8.9

billion in proceeds for 870 qualifying facilities. However,

the municipal market was still dominated by the almost

22,000 tax-exempt governmental bonds issued in 2010,

raising $293.6 billion of proceeds for public projects such

as schools, transportation infrastructure, and utilities.

Of the nearly $217.3 billion of long-term governmental

bonds issued, $122.6 billion of proceeds were used to

refunded prior governmental bond issues, while the remaining $94.6 billion of proceeds financed new projects.

This marked the first time since 1993 that refunding proceeds were greater than new money proceeds for governmental bonds. In addition, nearly 3,800 tax-exempt private activity bonds were issued in 2010, totaling $126.1

billion in proceeds. These tax-exempt private activity

bond proceeds financed qualified private facilities (such

as residential rental facilities, single-family housing, and

airports), as well as the facilities of IRC section 501(c)

(3) organizations (such as hospitals and private universities). Of the $123.6 billion of long-term private activity

bonds issued, $63.3 billion of the proceeds were used to

finance new projects, while the remaining $60.3 billion

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Figure P

Interest and Credit Payments to Issuers of Direct Payment Bonds, 2010

[Money amounts are in millions of dollars]

Direct payment bond type

Total, direct payment bonds [1]

Total, direct payment bonds allowable under the American Recovery

and Reinvestment Act (ARRA)

Build America Bond

Recovery zone economic development bond

Total, direct payment bonds allowable under the Hiring Incentives To

Restore Employment Act (HIRE)

Number of Forms

8038-CP filed

Interest payable to

bondholders

Credit

payments

(1)

(2)

(3)

3,116

5,122

1,828

2,658

5,072

1,782

2,380

5,002

1,751

278

458

Qualified school construction bond

374

Qualified zone academy bond

New clean renewable energy bond

** 29

** 1

** [2]

Qualified energy conservation bond

** Data combined to prevent disclosure of specific taxpayer data.

[1] Form 8038-CP, Return for Credit Payment to Issuers of Qualified Bonds, is used by issuers of Build America Bonds, recovery zone economic development bonds, and specified tax

credit bonds who elect to receive a direct payment from the Federal Government equal to a percentage of the interest payments on these bonds. Specifically, issuers of Build America

Bonds receive a credit payment equal to 35 percent of interest payable, and recovery zone economic development bonds receive a credit payment equal to 45 percent of interest

payable. For specified tax credit bonds the amount of refundable credit payments for qualified zone academy bonds and qualified school construction bonds is the lesser of 100

percent of the interest payable or 100 percent of the amount of interest determined at the applicable tax credit rate under Internal Revenue Code section 54A(b)(3). The amount of

refundable credit payments for new clean renewable energy bonds and qualified energy conservation bonds is the lesser of 70 percent of the interest payable or 70 percent of the

amount of interest determined at the applicable tax credit rate under section 54A(b)(3).

[2] Indicates an amount less than $500,000.

NOTE: Detail may not add to totals because of rounding.

were used to refund prior tax-exempt private activity

bond issues.

Data Sources and Limitations

The data presented in this article are based on the populations of Forms 8038, 8038-B, 8038-G, and 8038-TC

filed with the Internal Revenue Service for bonds issued

during Calendar Year 2010. Form 8038-CP data are

population data for credit payments requested during

the year.27 Tax-exempt bond data exclude returns filed

for commercial paper transactions, as well as issues

that are loans from the proceeds of another tax-exempt

bond issue, an arrangement known as pooled financing. Data for taxable bonds issued under the American

Recovery and Reinvestment Act of 2009 were compiled

from Forms 8038-B; however, a small percentage were

obtained from Forms 8038-G that included a specific

reference to “Build America Bonds” or “recovery zone

economic development bonds.” Data for tax credit bonds

were compiled from Forms 8038-TC; however, some

data were compiled from Forms 8038 and 8038-G that

included a specific reference to “qualified school construction,” “new clean renewable energy,” “qualified

zone academy,” or “Midwestern tax credit” bonds. Data

for credit payments were compiled from Forms 8038-CP

filed for interest paid to bondholders in 2010.

Bond issuers were required to file Forms 8038, 8038B, 8038-G, and 8038-TC by the 15th day of the second

calendar month after the close of the calendar quarter in

which the bond was issued. The filing deadline for Form

8038-CP varied based on the structure of the interest payments. In an effort to include as many applicable returns

for a particular year as possible, each of the respective

study periods extended well beyond established filing

deadlines. The Forms 8038, 8038-B, 8038-G, and 8038TC data include returns processed from January 1, 2010,

to April 30, 2012, for bonds issued in 2010. The Form

8038-CP data include returns processed from October

24, 2011, to April 23, 2012, for interest paid during 2010.

Where possible, data from amended returns filed and

27 Filing requirements for Form 8038-CP, Return for Credit Payment to Issuers of Qualified Bonds, vary depending on whether the bond has a fixed or variable rate of interest.

Fixed rate bonds must file no later than 45 days after the interest payment date and no earlier than 90 days before the interest payment date. For variable rate bonds, if the issuer

does not know the payment amount 45 days prior to the interest payment date, the issuer must aggregate all credit payments on a quarterly basis and file Form 8038-CP no later

than 45 days after the last interest payment date.

127

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

processed before the cutoff dates were included. Latefiled returns processed after the respective cutoff dates

were not included in the statistics.

During statistical processing, returns were subject to

thorough testing and correction procedures to ensure data

accuracy and validity. Additional checks were conducted

to identify and exclude duplicate returns. Wherever possible, returns with incomplete information, mathematical errors, or other reporting anomalies were edited to

resolve internal inconsistencies. However, in other cases,

it was not possible to reconcile reporting discrepancies.

Thus, some reporting and processing error may remain.

Explanation of Selected Terms

American Recovery and Reinvestment Act of 2009

(ARRA)—An act of the 111th Congress passed on

February 17, 2009, in response to the economic crisis.

The passage of ARRA added to the Internal Revenue

Code (IRC) sections 54AA and 1400U-1 through 1400U3, authorizing State and local governments to issue two

general types of Build America Bonds, recovery zone

economic development bonds, and recovery zone exempt

facility bonds.

Arbitrage bond—A bond where at the time of issuance, the issuer of the bond intentionally uses all proceeds or a portion of its proceeds to acquire a higher

yield or to replace funds used to acquire higher yielding

investments.

Bond anticipation note (BAN)—A type of shortterm governmental bond issue, the proceeds of which are

generally used to pay the startup costs associated with a

future, long-term bond-financed project. A renewal BAN

can be issued on maturity of an outstanding BAN, until

eventually, the proceeds of the future bond issue are used

to pay off or retire the outstanding BAN.

Build America Bond (BAB)—The American Recovery

and Reinvestment Act (ARRA) added IRC section 54AA

to enable State and local governments to issue bonds for

authorized purposes to promote economic recovery and

job creation. These new types of bonds would be issued

as taxable governmental bonds with federal subsidies to

help offset a portion of issuers’ borrowing costs. The two

distinct types of Build America Bonds—Build America

Bond tax credit and Build America Bond direct payment

subsidy—vary by the structure of federal subsidy. For

calendar year 2010, issuers of Build America Bonds were

required to file IRS Form 8038-B, Information Return

for Build America Bonds and Recovery Zone Economic

Development Bonds.

Build America Bond tax credit bond—This type

of BAB provides a tax credit to investors in an amount

128

equal to 35 percent of the total coupon interest payable

by the issuer of the taxable government bonds.

Build America Bond direct payment bond—This type

of BAB provides a refundable credit payment to State

or local governmental issuers in an amount equal to 35

percent of the total coupon interest payable to investors.

Clean renewable energy bond (CREB)—A type of

tax credit bond used to finance eligible clean renewable

energy projects which are subject to a national volume

cap. Issuers of clean renewable energy bonds under IRC

Section 54 must be eligible to apply for volume cap allocations. Clean renewable energy bonds were first authorized under the Energy Tax Incentive Act of 2005.

For additional information, see Internal Revenue Notice

2007-26.

Commercial paper—Commercial paper consists

of short-term notes that are continually rolled-over.

Maturities average about 30 days but can extend up to

270 days. Many localities use commercial paper to raise

cash needed for current transactions.

Enterprise zone facility bond—Established by the

passage of the Revenue Reconciliation Act of 1993, this

type of exempt facility bond may be issued for certain

businesses in designated “empowerment zones” or “enterprise communities.” These designations are made by

the Secretaries of Agriculture and Housing and Urban

Development and last for a 10-year period. The Taxpayer

Relief Act of 1997 provided certain economically depressed census tracts within the District of Columbia

designation as the “District of Columbia Enterprise

Zone.” Qualified enterprise zone facility bonds are generally subject to the same rules as exempt facility bonds.

Exempt facility bond—Bond issue of which 95 percent or more of the net proceeds is used to finance a

tax-exempt facility (as listed in IRC sections 142(a)(1)

through (15) and 142(k)). These facilities include airports,

docks and wharves, mass commuting facilities, facilities

for the furnishing of water, sewage facilities, solid waste

disposal facilities, qualified residential rental projects,

facilities for the local furnishing of electric energy or

gas. They also include local district heating or cooling

facilities, qualified hazardous waste facilities, high-speed

intercity rail facilities, environmental enhancements of

hydroelectric generating facilities, and qualified public

educational facilities.

Governmental bond—Any obligation that is not a

private activity bond (see below) and is issued by a State

or local government unit. The interest on a governmental

bond is excluded from gross income under IRC section 103.

Gulf Opportunity Zone bond—The Gulf Opportunity

Zone Act of 2005, signed into law as Public Law 109-135

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

on December 21, 2005, authorized a new category of taxexempt bonds. The proceeds of such bonds are used to

finance the construction and rehabilitation of certain

residential and nonresidential property located in certain localities of Alabama, Louisiana, and Mississippi,

designated as the “Gulf Opportunity Zone.” This area

constitutes the portion of the Hurricane Katrina disaster

area, determined by the President to warrant individual

or individual and public assistance from the Federal government, under the Robert T. Stafford Disaster Relief and

Emergency Assistance Act.

IRC section 1400N(a)(2) defines a qualified Gulf

Opportunity Zone Bond as any bond issued as part of an

issue if it meets the following requirements: (1) 95 percent or more of the net proceeds is to be used for qualified

project costs, or such issue meets the requirements of a

qualified mortgage issue, except as otherwise provided

in IRC section 1400N(a); (2) such bond is issued by the

State of Alabama, Louisiana, or Mississippi or any political subdivision thereof; (3) such bond is designated for

purposes of IRC section 1400N(a) either by the Governor,

or approved bond commission, of such State; (4) the bond

is issued after December 21, 2005, and before January 1,

2012; and (5) no portion of the proceeds of such issue is to

be used to provide any property described in IRC section

144(c)(6)(B). Gulf Opportunity Zone bonds that meet the

general requirements of a qualified mortgage bond issue,

and the proceeds of such bond issues that finance residences located in the Gulf Opportunity Zone, shall be

treated as qualified mortgage bonds (“Gulf Opportunity

Zone Mortgage Bonds”), as described in IRC section

1400N(a)(2)(A)(ii). The Act also authorized the issuance

of “Gulf Opportunity Zone Advance Refunding Bonds,”

which allow for an additional advance refunding for certain bonds, issued by the States of Alabama, Louisiana,

or Mississippi (or any political subdivision thereof), and

outstanding on August 28, 2005. This provision was effective for bonds issued between December 21, 2005, and

January 1, 2012. (See Internal Revenue Service Notice

2006-41, Internal Revenue Bulletin 2006-18, for additional information.)

The Hiring Incentives To Restore Employment Act of

2010 (HIRE)—Enacted on March 18, 2010, HIRE provides an option for issuers of certain qualified tax credit

bonds (“specified tax credit bonds”) to irrevocably elect

to issue the bonds with a direct pay subsidy, in the same

manner as the Build America Bonds direct pay subsidy.

The issuer of these bonds will receive an interest payment subsidy from the Federal government. Bondholders

will receive a taxable interest payment from the issuer

instead of a tax credit. For additional information please

see Internal Revenue Notice 2010-35.

Midwestern tax credit bond—A type of tax credit

bond whose issuers are located in specific counties in

Arkansas, Illinois, Indiana, Iowa, Missouri, Nebraska,

and Wisconsin that were adversely affected by severe

storms, tornadoes, or flooding (collectively referred to as

“the Midwestern disaster area”). Midwestern tax credit

bonds were only authorized for issuance during Calendar

Year 2010. See Internal Revenue Notice 2008-109 for additional information.

New clean renewable energy bond (NEWCREB)—

Any bond issued as part of an issue if: (1) 100 percent

of the available project proceeds of such issue are to be

used for capital expenditures incurred by governmental

bodies, public power providers, or cooperative electric

companies for one or more qualified renewable energy

facilities; (2) the bond is issued by a qualified issuer; and

(3) the issuer designates such bond for purposes of IRC

section 54C.

Issuers of new clean renewable energy bonds receive

70 percent of the interest paid to the borrower if the interest was determined at the tax credit bond rate determined

under section 54A(b)(3) for qualified tax credit bonds. If

a new clean renewable energy bond was issued as a specified tax credit bond, issuers can receive the lesser of 70

percent of their interest payment or the amount of interest

that would have been paid if the interest rate was determined at the tax credit bond rate. For more information

on new clean renewable energy bonds, see IRC section

54C and Internal Revenue Notice 2010-35.

New York Liberty Zone bonds—The Job Creation and

Worker Assistance Act of 2002 created Section 1400L of

the Internal Revenue Code of 1986 to provide various tax

benefits for the area of New York City damaged or affected by the terrorist attack on September 11, 2001. IRC

section 1400L(d) authorizes the issuance of an additional

type of exempt facility bond, namely, “Liberty Bonds.”

Liberty Bonds are subject to the following additional requirements: (1) 95 percent or more of the net proceeds

of such issue must be used for qualified project costs;

(2) the bond must be issued by the State of New York

or any political subdivision thereof; (3) the Governor of

the State of New York or the Mayor of the City of New

York must designate the bond for purposes of section

1400L(d); and (4) the bond must be issued after March

9, 2002, and before January 1, 2012. The maximum aggregate face amount of bonds that may be designated as

Liberty Bonds is $8 billion.

Nongovernmental output property bond—Bonds

used to finance the acquisition of property used by a nongovernmental entity in connection with an output facility

(such as an electric or gas power project). This bond must

meet additional tests under IRC section 141(d).

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Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Pooled financing—An arrangement whereby a portion of the proceeds of a governmental bond issue is used

to make loans to other governmental units.

Private activity bond—Bond issue of which more

than 10 percent of the proceeds is used for any private

business use and more than 10 percent of the payment of

the principal or interest is either secured by an interest

in property to be used for private business use (or payment for such property) or is derived from payments for

property (or borrowed money) used for a private business

use. A bond is also considered a private activity bond if

the amount of the proceeds used to make or finance loans

(other than loans described in IRC section 141(c)(2)) to

persons other than governmental units exceeds the lesser

of 5 percent of the proceeds or $5 million.

Qualified energy conservation bond—Any bond

issued as part of an issue if: (1) 100 percent of the available project proceeds of such issue are to be used for one

or more qualified conservation purposes; (2) the bond is

issued by a State or local government; and (3) the issuer

designates such bond for purposes of IRC section 54D.

Issuers of qualified energy conservation bonds receive 70 percent of the interest paid to the borrower if

the interest was determined at the tax credit bond rate

determined under section 54A(b)(3) for qualified tax

credit bonds. If a qualified energy conservation bond

was issued as a specified tax credit bond, issuers can

receive the lesser of 70 percent of their interest payment

or the amount of interest that would have been paid if the

interest rate was determined at the tax credit bond rate.

For more information on new clean renewable energy

bonds, see IRC section 54D and Internal Revenue Notice

2010-35.

Qualified green building and sustainable design

project—Bond issue of which 95 percent or more of the

net proceeds is used to finance qualified green building and sustainable design projects, as designated by the

Secretary of the Treasury, after consultation with the

Administrator of the Environmental Protection Agency.

The project must be nominated by a State or local government, and the issuer must submit a detailed application to the Treasury Department for consideration, and,

on approval, allocation of a specified issuance amount.

Section 701 of the American Jobs Creation Act of 2004

added IRC sections 142(a)(14) and 142(l), authorizing up

to $2 billion of tax-exempt private activity bonds, not

subject to the unified volume cap, for qualified green

building and sustainable design projects, to be issued

between December 31, 2004, and October 1, 2012. (See

130

Internal Revenue Service Notice 2006-41, Internal

Revenue Bulletin 2006-18, for additional information.)

Qualified highway or surface transfer freight facility

bond—Bond issue of which 95 percent or more of the

net proceeds is used to provide qualified highway or surface freight transfer facilities. Section 11143 of the Safe,

Accountable, Flexible, Efficient, Transportation Equity

Act: A Legacy for Users (SAFETEA-LU) Public Law

109-59, signed into law on August 10, 2005, added IRC

sections 142(a)(15) and 142(m). Section 142(m)(1) defines

the term “qualified highway or surface freight transfer

facilities” as: (a) any surface transportation project that

receives Federal assistance under title 23, United States

Code (as in effect on August 10, 2005); (b) any project

for an international bridge or tunnel for which an international entity authorized under Federal or State law is

responsible and that receives Federal assistance under

title 23, United States Code (as so in effect); or, (c) any

facility for the transfer of freight from truck to rail or

rail to truck (including any temporary storage facilities

directly related to such transfers) that receives Federal

assistance under either title 23 or title 49, United States

Code (as so in effect). This legislation authorized issuance of up to $15 billion of such bonds, not subject to

the unified volume cap, applicable to bonds issued after

August 10, 2005. Allocation of the $15-billion national

limitation is under the jurisdiction of the Department of

Transportation. (See Internal Revenue Service Notice

2006-45, Internal Revenue Bulletin 2006-20, for additional information.)

Qualified hospital bond—Type of qualified section

501(c)(3) bond issue of which 95 percent or more of the

net proceeds are to be used to finance a hospital.

Qualified mortgage bond—Bond issue of which the

proceeds (except issuance costs and reasonably required

reserves) are used to provide financing assistance for

single-family residential property, and which meets the

additional requirements in IRC section 143. Bond proceeds can be applied toward the purchase, improvement,

or rehabilitation of owner-occupied residences, as well as

to finance qualified home-improvement loans.

Qualified public educational facility bond—Bond

issue of which 95 percent or more of the net proceeds

is used to provide qualified public educational facilities,

defined by IRC section 142(k)(1) as any school facility that is: (a) part of a public elementary or secondary

school; and (b) is owned by a private, for-profit corporation under a public-private partnership agreement with a

State or local educational agency. Under a “public-private

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

partnership agreement,” the corporation agrees to construct, rehabilitate, refurbish, or equip a school facility

and, at the end of the term of the agreement, to transfer the school facility to the State or local educational

agency for no additional consideration. Such bonds are

not subject to the unified volume cap; rather, the annual

State limit is equal to the lesser of $10 per resident or $5

million.

Qualified redevelopment bond—Bond issue of which

95 percent or more of the net proceeds is used to finance

certain specified real property acquisition and redevelopment in blighted areas. (See IRC section 144(c) for additional requirements.)

Qualified school construction bond (QSCB)—A

type of tax credit bond, of which 100 percent of the

bond proceeds are to be used for construction, rehabilitation, repair, or land acquisition in connection with a

public school facility, which is issued by a State or local

government within the jurisdiction of where the school

is located. QSCBs are subject to a national volume cap

to be allocated by the Treasury among the States. The

American Recovery and Reinvestment Act of 2009

(ARRA) created IRC section 54F authorizing QSCBs.

The Hiring Incentives to Restore Employment Act

of 2010 allowed issuers of QSCBs to receive 100 percent of the interest paid to the borrower if the interest

were determined at the tax credit bond rate determined

under section 54A(b)(3) for qualified tax credit bonds. If

a QSCB was issued as a specified tax credit bond issuers

can receive the lesser of 100 percent of their interest payment or the amount of interest that would have been paid

if the interest rate was determined at the tax credit bond

rate. For more information on QSCBs, see IRC section

54E and Internal Revenue Notice 2010-35.

Qualified section 501(c)(3) bond—Bonds issued by

State and local governments to finance the activities of

charitable organizations that are tax-exempt under IRC

section 501(c)(3). A bond must meet the following conditions to be classified as a section 501(c)(3) bond: 1)

all property financed by the net proceeds of the bond

issue is to be owned by a section 501(c)(3) organization

or a governmental unit; and 2) the bond would not be a

private activity bond if section 501(c)(3) organizations

were treated as governmental units with respect to their

activities that are not related trades or businesses, and

the private activity bond definition was applied using a

5-percent threshold rather than a 10-percent threshold.

The primary beneficiaries of these bonds are private,

nonprofit hospitals, colleges, and universities. A qualified

hospital bond issue is one in which 95 percent or more of

the net proceeds is to be used for a hospital.

Qualified small issue bond—Bond issue generally

not exceeding $1 million and of which 95 percent or more

of the net proceeds is used to finance the acquisition of

land and depreciable property or to refund such issues.

In certain instances, an election to take certain capital

expenditures into account can increase the limit on bond

size, from $1 million to $10 million. These bonds may

only be used to finance manufacturing facilities and to

benefit certain first-time farmers.

Qualified student loan bond—Bond issue of which

90 percent or more of the net proceeds is used to make

or finance student loans under a program of general application subject to the Higher Education Act of 1965 (see

IRC section 144(b)(1)(A) for additional requirements) or

of which 95 percent or more of the net proceeds is used

to make or finance student loans under a program of general application approved by the State (see Code section

144(b)(1)(B) for additional requirements).

Qualified veterans’ mortgage bond—In general, a

bond issue of which 95 percent or more of the net proceeds is used to finance the purchase, improvement, or

rehabilitation of owner-occupied residences for veterans

who: 1) served prior to January 1, 1977; and 2) applied for

such a mortgage prior to the date 30 years after leaving

active service or January 31, 1985, whichever is later. The

payment of interest and principal must be secured by a

general obligation of the State, and the bond must meet

certain of the requirements of IRC section 143. The issuance of qualified veterans’ mortgage bonds was limited

to the following five States: Alaska, California, Oregon,

Texas, and Wisconsin, each of which had a veterans’

mortgage bond program in effect prior to June 22, 1984.

Qualified zone academy bond (QZAB)—A type of

tax credit bond issued by a State or local government

to finance certain eligible public school purposes authorized under IRC section 54E. QZABs are subject to

a national volume cap to be allocated by the Treasury

among the States.

Issuers of QZABs receive 100 percent of the interest

paid to the borrower if the interest was determined at the

tax credit bond rate determined under section 54A(b)(3)

for qualified tax credit bonds. If a QZAB was issued as

a specified tax credit bond, issuers can receive the lesser

of 100 percent of their interest payment or the amount

of interest that would have been paid if the interest rate

was determined at the tax credit bond rate. For more information on QZABs, see IRC section 54E and Internal

Revenue Notice 2010-35.

Recovery zone bond—The American Recovery

and Reinvestment Act (ARRA) added IRC sections

1400U-1 through 1400U-3 authorizing State and local

131

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

governments to issue recovery zone bonds. These bonds

provide tax incentives through lower borrowing costs

and are intended to promote job creation and economic

recovery in targeted areas particularly affected by employment declines. See Internal Revenue Notice 2009-50

for additional information.

Recovery zone economic development bond—

Authorized under IRC section 1400U-2, this type of bond

provides for a deeper Federal subsidy through a refundable credit payment to State or local governmental issuers in an amount equal to 45 percent of the total coupon

interest payable to investors. A recovery zone economic

development bond must be a Build America Bond, the

proceeds of which must be used for one or more qualified economic development purposes. Recovery zone

economic development bonds are allocated under a $10

billion national bond volume cap. For Calendar Year

2010, issuers of recovery zone exempt facility bonds were

required to file IRS Form 8038-B, Information Return

for Build America Bonds and Recovery Zone Economic

Development Bonds.

Recovery zone exempt facility bond—Authorized

under IRC section 1400U-3, which expanded the definition of the term “exempt facility bond” to include any recovery zone facility bond. A recovery zone exempt facility bond must be a qualified private activity bond under

IRC section 142, the proceeds of which may be used to

finance certain “recovery zone property.” Recovery zone

exempt facility bonds are allocated under a $15 billion

national bond volume cap. For Calendar Year 2010, issuers of recovery zone exempt facility bonds were required to file IRS Form 8038, Information Return for

Tax-Exempt Private Activity Bonds.

Specified tax credit bonds—New clean renewable

energy bonds, qualified energy conservation bonds, qualified zone academy bonds and qualified school construction bonds are specified tax credit bonds for purposes

132

of IRC section 6431(f). As a result of legislation in the

HIRE Act, issuers of these bonds can elect to receive

the tax credit in the form of a direct payment subsidy

instead of the bondholder (investor) receiving the tax

credits. Issuers are required to file IRS Form 8038-TC,

Information Return for Tax Credit Bonds and Specified

Tax Credit Bonds, to report such issues. See IRC section

54 and Internal Revenue Notice 2010-35.

Tax credit bond—Tax credit bonds are not interestbearing obligations. The holder of a tax credit bond is

generally allowed an annual Federal income tax credit

while the bond is outstanding. The amount of the credit

is equal to the face amount of the bond multiplied by

the credit rate of the bond. Unique to all other tax credit

bonds, issuers of certain qualified tax credit bonds, specifically new clean renewable energy bonds and qualified energy conservation bonds, pay bondholders taxable interest payments in addition to the tax credit the

bondholder receives. For additional information, see

Internal Revenue Notice 2009-15 and “Frequently asked

Question on Qualified Tax Credit Bonds and Specified

Tax Credit Bonds” at http://www.irs.gov/pub/irs-tege/

tc_and_stcb_q-a._09-07-10_1.5.pdf.

Tax Reform Act transition property bond—A bond

issued under transitional rules contained in the Tax

Reform Act of 1986. Proceeds from bonds issued under

these rules include issues used to fund such items as

pollution control facilities, parking facilities, industrial parks, sports stadiums, and convention facilities.

Proceeds from other bonds issued under the transitional

rules are included in this category only if they could not

be identified as another issue type.

NOTE: Additional tax-exempt bond data, including data

for prior years, can be found on the SOI’s Tax Stats Web

site: http://www.irs.gov/taxstats. Click on “Tax-Exempt

Bonds.”

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Table 1. Tax-Exempt Governmental Bonds, by Type and Term

of Issue, 2010

[Money amounts are in millions of dollars]

Type and term of issue

Number

Amount

21,861

All issues, total [1]

293,625

Short-term

5,927

76,367

Long-term

15,934

217,258

15,256

159,906

New money issues, total

Short-term

4,239

65,262

Long-term

11,017

94,644

8,817

133,719

Refunding issues, total

Short-term

2,351

11,105

Long-term

6,466

122,614

[1] A given bond issue can include both new money and refunding proceeds. Thus, the number of new money

issues plus the number of refunding issues will sometimes exceed the total number of issues. However, the

money amounts add to the totals.

NOTE: Detail may not add to totals because of rounding.

Table 2. Long-Term, Tax-Exempt Governmental Bonds, by Bond Purpose and Type of Issue, 2010

[Money amounts are in millions of dollars]

Bond purpose

Total [1]

Education

Health and hospital

Transportation

All issues

New money issues

Refunding issues

Number

Amount

Number

Amount

Number

Amount

(1)

(2)

(3)

(4)

(5)

(6)

15,934

217,258

11,017

94,644

6,466

122,614

5,411

52,201

3,522

21,682

2,314

30,519

312

3,619

253

1,842

1,777

1,073

29,352

787

14,962

440

14,390

Public safety

1,756

5,156

1,499

2,772

407

2,383

Environment

1,421

13,693

1,008

7,679

636

6,014

Housing

100

790

290

500

Utilities

2,179

38,151

1,366

12,596

1,137

25,555

Bond and tax/revenue anticipation notes

Other purposes [2]

288

2,198

247

1,882

316

4,623

72,099

3,078

30,939

2,198

41,160

[1] A given bond issue can include more than one purpose and can include both new money and refunding proceeds. Thus, the summation of number of issues by purpose or by type

of issue will sometimes exceed the total number of issues. However, the money amounts add to the totals.

[2] "Other purposes" refer to obligations for which a specific purpose either did not apply or was not clearly indicated on Form 8038-G, Information Return for Tax-Exempt Government

Obligations.

NOTE: Detail may not add to totals because of rounding.

133

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Table 3. Computation of Lendable Proceeds for Long-Term, Tax-Exempt Governmental Bonds, by

Bond Purpose, 2010

[Money amounts are in millions of dollars]

Bond

issuance

costs

Entire

issue

price

Bond purpose

Credit

enhancement

Allocation to

reserve fund

Number

Amount

Number

Amount

Number

Amount

Number

(1)

(2)

(3)

(4)

(5)

(6)

(7)

15,934

217,258

10,959

2,029

1,349

189

1,221

5,411

52,201

3,902

571

568

215

312

3,619

173

Transportation

1,073

29,352

808

214

Public safety

1,756

5,156

691

Environment

1,421

13,693

1,068

114

107

157

Total [1]

Education

Health and hospital

Housing

100

790

Utilities

2,179

38,151

1,859

395

296

373

Bond and tax/revenue anticipation notes

Other purposes [2]

Bond purpose

288

2,198

4,623

72,099

3,351

616

348

322

Allocation to

reserve fund

—continued

Total lendable

proceeds

Proceeds used to refund

prior issues

Nonrefunding

proceeds

Amount

Number

Amount

Number

Amount

Number

Amount

(8)

(9)

(10)

(11)

(12)

(13)

(14)

2,555

15,931

212,485

6,466

120,536

11,014

91,949

Education

226

5,411

51,356

2,314

30,110

3,520

21,246

Health and hospital

312

3,528

1,741

253

1,787

Transportation

605

1,073

28,523

440

14,044

787

14,479

Public safety

1,756

5,057

407

2,335

1,499

2,722

Environment

182

1,421

13,387

636

5,917

1,008

7,470

Housing

100

769

493

276

Utilities

707

2,179

37,000

1,137

24,962

1,366

12,037

Total [1]

Bond and tax/revenue anticipation notes

Other purposes [2]

288

2,178

313

247

1,865

731

4,623

70,687

2,198

40,621

3,078

30,067

d—Data deleted to avoid disclosure of information about specific bonds. However, the data are included in the appropriate totals.

[1] A given bond issue can include more than one purpose. Thus, the summation of number of issues by purpose will sometimes exceed the total number of issues. However,

the money amounts add to the totals.

[2] "Other purposes" refer to obligations for which a specific purpose either did not apply or was not clearly indicated on the Form 8038-G, Information Return for Tax-Exempt

Government Obligations.

NOTE: Detail may not add to totals because of rounding.

134

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Table 4. New Money Long-Term, Tax-Exempt Governmental Bonds, by Bond Purpose and Size of

Entire Issue, 2010

[Money amounts are in millions of dollars, except for size of entire issue, which is in whole dollars]

Size of entire issue

All issues

Bond purpose

Number

(1)

Total [2]

Education

Amount

(2)

Number

(3)

$1,000,000

under

$5,000,000

$500,000

under

$1,000,000

Under

$500,000 [1]

Amount

(4)

Number

(5)

Amount

(6)

Number

(7)

Amount

(8)

11,017

94,644

3,970

940

1,334

900

2,921

6,358

3,522

21,682

1,254

300

431

295

851

1,889

147

Health and hospital

253

1,842

Transportation

787

14,962

239

205

335

Public safety

1,499

2,772

866

205

209

136

237

391

Environment

595

1,008

7,679

263

122

319

Housing

290

Utilities

1,366

12,596

226

154

542

1,121

Bond and tax/revenue

anticipation notes

Other purposes [3]

247

1,882

222

3,078

30,939

1,021

230

324

205

795

1,612

Size of entire issue—continued

Bond purpose

Number

(9)

Total [2]

$25,000,000

under

$75,000,000

$10,000,000

under

$25,000,000

$5,000,000

under

$10,000,000

Amount

(10)

Number

(11)

Amount

(12)

Number

(13)

$75,000,000

or more

Amount

(14)

Number

(15)

Amount

(16)

1,050

6,247

950

11,816

508

16,094

284

52,289

Education

338

2,013

376

4,640

206

6,368

6,177

Health and hospital

114

378

560

611

Transportation

277

631

1,117

12,505

Public safety

336

344

441

920

Environment

116

585

107

1,045

790

4,525

Housing

Utilities

183

933

133

1,319

1,781

7,289

Bond and tax/revenue

anticipation notes

197

237

577

608

Other purposes [3]

351

1,745

316

3,156

178

4,364

19,627

[1] Form 8038-G, Information Return for Tax-Exempt Government Obligations, with an entire issue price less than $100,000 is excluded from the study. Issuers of these

bonds are instructed to file Form 8038-GC, Information Return for Small Tax-Exempt Governmental Bond Issues, Leases, and Installment Sales. Statistics of Income does not

process data from the Forms 8038-GC filed with the Internal Revenue Service.

[2] A given bond issue can include more than one purpose. Thus, the summation of number of issues by purpose will sometimes exceed the total number of issues. However,

the money amounts add to the totals.

[3] "Other purposes" refer to obligations for which a specific purpose either did not apply or was not clearly indicated on the Form 8038-G, Informational Return for TaxExempt Government Obligations.

NOTE: Detail may not add to totals because of rounding.

135

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Table 5. New Money Long-Term, Tax-Exempt Governmental Bonds, by State of Issue and

Bond Purpose, 2010

[Money amounts are in millions of dollars]

Bond purpose

Total [1]

State of issue

136

Education

Health and hospital

Transportation

Number

Amount

Number

Amount

Number

Amount

Number

Amount

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

All States

11,017

94,644

3,522

21,682

253

1,842

787

Alabama

189

642

125

14,962

Alaska

198

693

Arizona

135

3,227

342

Arkansas

150

419

257

California

624

14,502

214

4,010

411

2,726

Colorado

200

1,299

232

310

Connecticut

123

1,160

299

266

Delaware

341

District of Columbia

300

Florida

291

8,436

897

1,711

Georgia

219

2,091

322

Hawaii

149

Idaho

Illinois

526

3,709

293

789

511

Indiana

268

1,311

235

169

221

Iowa

361

1,809

124

719

Kansas

228

731

135

Kentucky

199

963

197

Louisiana

170

1,540

334

743

Maine

111

271

Maryland

133

1,744

499

317

265

Massachusetts

187

1,625

451

Michigan

298

1,156

228

Minnesota

425

2,166

281

355

Mississippi

162

310

Missouri

287

899

105

246

192

Montana

Nebraska

290

399

112

Nevada

271

158

New Hampshire

380

New Jersey

321

2,336

169

529

673

New Mexico

878

403

New York

605

6,612

302

1,071

310

1,645

North Carolina

316

2,295

595

168

North Dakota

133

135

Ohio

306

1,562

118

301

168

250

Oklahoma

383

1,909

274

976

Oregon

1,027

107

Pennsylvania

598

4,529

200

1,356

633

Rhode Island

286

Footnotes at end of table.

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Table 5. New Money Long-Term, Tax-Exempt Governmental Bonds, by State of Issue and

Bond Purpose, 2010—Continued

[Money amounts are in millions of dollars]

Bond purpose

Total [1]

State of issue

Education

Health and hospital

Transportation

Number

Amount

Number

Amount

Number

Amount

Number

(1)

(2)

(3)

(4)

(5)

(6)

(7)

Amount

(8)

South Carolina

188

1,606

412

South Dakota

377

Tennessee

156

487

Texas

996

8,630

246

3,243

570

Utah

975

275

399

Vermont

169

Virginia

146

1,599

404

112

Washington

174

2,655

393

West Virginia

434

194

215

Wisconsin

296

1,068

237

Wyoming

U.S. Possessions [2]

3,145

Footnotes at end of table.

137

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Table 5. New Money Long-Term, Tax-Exempt Governmental Bonds, by State of Issue and Bond

Purpose, 2010—Continued

[Money amounts are in millions of dollars]

Bond purpose

State of issue

138

Public safety

Environment

Housing

Number

Amount

Number

Amount

Number

Amount

(9)

(10)

(11)

(12)

(13)

(14)

All States

1,499

2,772

1,008

7,679

290

Alabama

Alaska

Arizona

405

Arkansas

California

548

1,408

102

Colorado

Connecticut

Delaware

District of Columbia

Florida

447

Georgia

216

Hawaii

Idaho

Illinois

Indiana

367

Iowa

158

129

Kansas

Kentucky

Louisiana

Maine

Maryland

330

Massachusetts

300

Michigan

334

Minnesota

Mississippi

Missouri

126

Montana

Nebraska

Nevada

New Hampshire

New Jersey

355

New Mexico

New York

142

North Carolina

100

275

North Dakota

Ohio

486

Oklahoma

Oregon

Pennsylvania

129

829

Rhode Island

Footnotes at end of table.

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Table 5. New Money Long-Term, Tax-Exempt Governmental Bonds, by State of Issue and Bond

Purpose, 2010—Continued

[Money amounts are in millions of dollars]

Bond purpose

State of issue

Public safety

Environment

Housing

Number

Amount

Number

Amount

Number

(9)

(10)

(11)

(12)

(13)

Amount

(14)

South Carolina

South Dakota

Tennessee

Texas

129

131

194

Utah

109

Vermont

Virginia

139

164

Washington

461

West Virginia

Wisconsin

197

Wyoming

U.S. Possessions [2]

Footnotes at end of table.

139

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Table 5. New Money Long-Term, Tax-Exempt Governmental Bonds, by State of Issue and

Bond Purpose, 2010—Continued

[Money amounts are in millions of dollars]

Bond purpose

State of issue

140

Bond and tax/revenue

anticipation notes

Utilities

Other purposes [3]

Number

Amount

Number

Amount

Number

Amount

(15)

(16)

(17)

(18)

(19)

(20)

All States

1,366

12,596

247

1,882

3,078

30,939

Alabama

130

267

Alaska

154

Arizona

1,703

Arkansas

California

2,897

739

178

1,660

Colorado

230

419

Connecticut

408

Delaware

District of Columbia

Florida

1,148

106

4,138

Georgia

958

456

Hawaii

Idaho

Illinois

121

2,241

184

Indiana

Iowa

131

568

Kansas

341

Kentucky

318

317

Louisiana

170

104

Maine

Maryland

100

362

Massachusetts

109

530

Michigan

430

Minnesota

244

138

1,096

Mississippi

122

Missouri

172

Montana

Nebraska

102

146

119

Nevada

New Hampshire

187

New Jersey

578

New Mexico

306

New York

119

144

3,218

North Carolina

114

111

1,053

North Dakota

Ohio

479

Oklahoma

397

163

Oregon

410

126

179

Pennsylvania

498

260

138

847

Rhode Island

Footnotes at end of table.

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Table 5. New Money Long-Term, Tax-Exempt Governmental Bonds, by State of Issue and

Bond Purpose, 2010—Continued

[Money amounts are in millions of dollars]

Bond purpose

State of issue

Bond and tax/revenue

anticipation notes

Utilities

Other purposes [3]

Number

Amount

Number

Amount

Number

(15)

(16)

(17)

(18)

(19)

Amount

(20)

South Carolina

325

South Dakota

446

Tennessee

128

243

2,211

Texas

289

2,194

256

Utah

Vermont

Virginia

102

599

Washington

333

1,171

West Virginia

183

Wisconsin

148

218

Wyoming

U.S. Possessions [2]

2,449

d—Data deleted to avoid disclosure of information about specific bonds. However, the data are included in the appropriate totals.

[1] A given bond issue can include more than one purpose. Thus, the summation of number of issues by purpose will sometimes exceed the total number of issues.

However, the money amounts add to the totals.

[2] U.S. Possessions include Guam, Puerto Rico, and the U.S. Virgin Islands.

[3] "Other purposes" refer to obligations for which a specific purpose either did not apply or was not clearly indicated on Form 8038-G, Information Return for TaxExempt Government Obligations .

NOTE: Detail may not add to totals because of rounding.

141

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Table 6. Tax-Exempt Private Activity Bonds, by Type

and Term of Issue, 2010

[Money amounts are in millions of dollars]

Type and term of issue

Number

All issues, total [1]

Amount

3,799

127,054

Short-term

3,441

Long-term

3,721

123,613

2,562

63,611

New money issues, total

Short-term

281

Long-term

2,516

63,330

1,747

63,443

Refunding issues, total

Short-term

3,160

Long-term

1,710

60,283

[1] A given bond issue can include both new money and refunding proceeds. Thus, the number of

new money issues plus the number of refunding issues will sometimes exceed the total number of

issues. However, the money amounts add to the totals.

NOTE: Detail may not add to totals because of rounding.

142

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Table 7. Long-Term, Tax-Exempt Private Activity Bonds, by Bond Purpose and Type of Issue, 2010

[Money amounts are in millions of dollars]

Bond purpose

All issues

New money issues

Refunding issues

Number

Amount

Number

Amount

Number

Amount

(1)

(2)

(3)

(4)

(5)

(6)

Total [1]

3,721

123,613

2,516

63,330

1,710

60,283

Airports

14,719

7,972

6,747

Docks and wharves

2,101

822

1,279

Water, sewage, and solid waste disposal facilities

118

6,802

2,717

4,085

Qualified residential rental facilities

308

5,684

206

3,523

116

2,161

Local electricity or gas furnishing facilities

508

Tax Reform Act of 1986 transition property bonds

3,329

Qualified enterprise zone facility bonds

Qualified empowerment zone facility bonds

Qualified highway or surface freight transfer facility bonds

1,741

Qualified New York Liberty Zone bonds

2008 Housing Act bonds issued under IRC section 142

361

309

Qualified Gulf Opportunity Zone exempt facility bonds, Gulf

Opportunity Zone mortgage bonds, and Gulf Opportunity Zone

advance refunding bonds

4,962

4,539

423

Environmental enhancements of hydroelectric generating facilities

Qualified Midwestern disaster area exempt facility bonds, and

qualified Midwestern disaster area mortgage bonds

418

Qualified Hurricane Ike disaster area exempt facility bonds

699

Recovery zone facility bonds

427

6,267

427

6,267

Qualified mortgage bonds

7,355

4,295

3,061

2008 Housing Act bonds issued under IRC section 143

1,045

865

180

Qualified veterans' mortgage bonds

307

428

823

335

578

103

244

Qualified small issue bonds

Qualified student loan bonds

4,683

863

3,821

Qualified hospital facilities

429

29,374

249

11,710

275

17,664

15,429

Qualified section 501(c)(3) nonhospital bonds

1,614

31,631

983

16,202

955

Nongovernmental output property bonds

Other purposes [2]

d—Data deleted to avoid disclosure of information about specific bonds. However, the data are included in the appropriate totals.

[1] A given bond issue can include more than one purpose and can include both new money and refunding proceeds. Thus, the summation of number of issues by purpose or by

type of issue will sometimes exceed the total number of issues. However, the money amounts add to the totals.

[2] For this table, "other purposes" refer to obligations for which a specific purpose either did not apply or was not clearly indicated on Form 8038, Information Return for Tax-Exempt

Private Activity Bond Issues .

NOTE: Detail may not add to totals because of rounding.

143

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Table 8. Computation of Lendable Proceeds for Long-Term Tax-Exempt Private Activity Bonds, by

Selected Bond Purpose, 2010

[Money amounts are in millions of dollars]

Selected bond purpose

Entire issue price

Number

(1)

Credit enhancement

Allocation to reserve

fund

Number

(3)

Number

(5)

Number

(7)

Amount

(4)

Amount

(6)

Amount

(8)

Total [1]

3,721

123,613

2,139

887

192

123

472

1,824

Airports

14,719

114

542

Docks and wharves

2,101

Water, sewage, and solid waste disposal

facilities

118

6,802

Qualified residential rental facilities

308

5,684

2008 Housing Act bonds issued under IRC

section 142

361

Qualified Gulf Opportunity Zone exempt

facility bonds, Gulf Opportunity Zone

mortgage bonds, and Gulf Opportunity

Zone advance refunding bonds

4,962

Qualified Midwestern disaster area

exempt facility bonds, and qualified

Midwestern disaster area mortgage

bonds

418

Recovery zone facility bonds

427

6,267

326

Qualified mortgage bonds

7,355

2008 Housing Act bonds issued under IRC

section 143

1,045

Qualified small issue bonds

428

823

Qualified student loan bonds

4,683

Qualified hospital facilities

Qualified section 501(c)(3) nonhospital

bonds

429

29,374

292

259

415

1,614

31,631

1,109

297

247

512

7,388

All other bonds, combined [2]

Footnotes at end of table.

144

Amount

(2)

Bond issuance costs

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Table 8. Computation of Lendable Proceeds for Long-Term Tax-Exempt Private Activity Bonds, by

Selected Bond Purpose, 2010—Continued

[Money amounts are in millions of dollars]

Selected bond purpose

Total lendable proceeds

Number

(9)

Amount

(10)

Proceeds used to refund prior

issues

Number

(11)

Amount

(12)

Nonrefunding proceeds

Number

(13)

Amount

(14)

Total [1]

3,721

120,778

1,712

59,352

2,609

61,427

Airports

14,050

6,601

7,450

Docks and wharves

2,001

1,232

769

Water, sewage, and solid waste disposal

facilities

118

6,767

4,077

2,690

Qualified residential rental facilities

308

5,652

116

2,158

206

3,494

2008 Housing Act bonds issued under IRC

section 142

359

307

Qualified Gulf Opportunity Zone exempt

facility bonds, Gulf Opportunity Zone

mortgage bonds, and Gulf Opportunity

Zone advance refunding bonds

4,916

421

4,495

Qualified Midwestern disaster area

exempt facility bonds, and qualified

Midwestern disaster area mortgage

bonds

411

Recovery zone facility bonds

427

6,138

427

6,138

Qualified mortgage bonds

3,044

4,253

851

7,297

2008 Housing Act bonds issued under IRC

section 143

1,027

176

Qualified small issue bonds

428

815

103

244

336

571

Qualified student loan bonds

4,626

3,790

836

Qualified hospital facilities

Qualified section 501(c)(3) nonhospital

bonds

429

28,640

275

17,274

259

11,366

1,614

30,793

955

15,152

1,065

15,641

7,286

5,131

2,155

All other bonds, combined [2]

d—Data deleted to avoid disclosure of information for specific bonds. However, the data are included in the appropriate totals.

[1] A given bond issue can include more than one purpose. Thus, the summation of number of issues by purpose will sometimes exceed the total number of issues. However, the

money amounts add to the totals.

[2] For purposes of this table, this category includes all issues for which a specific purpose either did not apply or was not clearly indicated on Form 8038, Information Return for

Tax-Exempt Private Activity Bond Issues, as well as bonds issued for: local electricity or gas furnishing facilities, facilities issued under a transitional rule of the Tax Reform Act of

1986, qualified enterprise zone facility bonds, qualified empowerment zone facility bonds, qualified highway or surface freight transfer facility bonds, New York Liberty Zone bonds,

environmental enhancements of hydroelectric generating facilities, Hurricane Ike disaster area exempt facility bonds, qualified veterans' mortgage bonds, and nongovernmental

output property bonds.

NOTE: Detail may not add to totals because of rounding.

145

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Table 9. New Money Long-Term Tax-Exempt Private Activity Bonds, by Selected Bond Purpose and

Size of Entire Issue, 2010

[Money amounts are in millions of dollars, except for size of entire issue, which is in whole dollars]

Size of entire issue

All issues

Selected bond purpose

$5,000,000 under

$10,000,000

Number

Amount

Number

Amount

Number

Amount

Number

Amount

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

Total [1]

2,516

63,330

279

600

1,582

459

Airports

7,972

Docks and wharves

Water, sewage, and solid waste

disposal facilities

822

2,717

Qualified residential rental facilities

2008 Housing Act bonds issued under

IRC section 142

206

3,523

388

309

4,539

Qualified Gulf Opportunity Zone

exempt facility bonds, and Gulf

Opportunity Zone mortgage bonds

2,939

Qualified Midwestern disaster area

exempt facility bonds, and qualified

Midwestern disaster area mortgage

bonds

418

Recovery zone facility bonds

427

6,267

158

441

102

716

Qualified mortgage bonds

4,295

2008 Housing Act bonds issued under

IRC section 143

865

Qualified small issue bonds

335

578

225

167

258

Qualified student loan bonds

863

Qualified hospital facilities

Qualified section 501(c)(3) nonhospital

bonds

249

11,710

154

983

16,202

273

667

198

1,144

All other bonds, combined [2]

2,252

Footnotes at end of table.

146

$1,000,000 under

$5,000,000

Under $1,000,000

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Table 9. New Money Long-Term Tax-Exempt Private Activity Bonds, by Selected Bond Purpose and

Size of Entire Issue, 2010—Continued

[Money amounts are in millions of dollars, except for size of entire issue, which is in whole dollars]

Size of entire issue

Selected bond purpose

$10,000,000 under

$25,000,000

$25,000,000 under

$50,000,000

$50,000,000 under

$100,000,000

$100,000,000 or more

Number

Amount

Number

Amount

Number

Amount

Number

Amount

(9)

(10)

(11)

(12)

(13)

(14)

(15)

(16)

Total [1]

534

7,187

267

6,981

173

10,239

204

34,319

Airports

210

277

7,377

Docks and wharves

Water, sewage, and solid waste

disposal facilities

Qualified residential rental facilities

637

171

172

368

1,937

1,101

682

561

679

2008 Housing Act bonds issued under

IRC section 142

Qualified Gulf Opportunity Zone

exempt facility bonds, and Gulf

Opportunity Zone mortgage bonds

171

846

3,402

Qualified Midwestern disaster area

exempt facility bonds, and qualified

Midwestern disaster area mortgage

bonds

124

Recovery zone facility bonds

100

1,595

1,215

865

1,425

Qualified mortgage bonds

251

931

3,049

457

2008 Housing Act bonds issued under

IRC section 143

338

Qualified small issue bonds

100

Qualified student loan bonds

673

Qualified hospital facilities

Qualified section 501(c)(3) nonhospital

bonds

671

947

2,422

7,438

253

3,048

133

3,011

2,899

5,419

394

1,826

All other bonds, combined [2]

d—Data deleted to avoid disclosure of information for specific bonds. However, the data are included in the appropriate totals.

[1] A given bond issue can include more than one purpose. Thus, the summation of number of issues by purpose will sometimes exceed the total number of issues. However, the

money amounts add to the totals.

[2] For purposes of this table, this category includes all issues for which a specific purpose either did not apply or was not clearly indicated on Form 8038, Information Return for TaxExempt Private Activity Bond Issues, as well as bonds issued for: local electricity or gas furnishing facilities, facilities issued under a transitional rule of the Tax Reform Act of 1986,

qualified highway or surface freight transfer facility bonds, environmental enhancements of hydroelectric generating facilities, Hurricane Ike disaster area exempt facility bonds, and

qualified veterans' mortgage bonds.

NOTE: Detail may not add to totals because of rounding.

147

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Table 10. New Money Long-Term, Tax-Exempt Private Activity Bonds, by State of Issue and

Selected Bond Purpose, 2010

[Money amounts are in millions of dollars]

Selected bond purpose

Total [1]

State of issue

All States

Alabama

Water, sewage, and

solid waste disposal

facilities

Qualified residential

rental facilities

2008 Housing Act

bonds issued under IRC

section 142

Number

Amount

Number

Amount

Number

Amount

Number

Amount

Number

Amount

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

2,516

63,330

913

8,794

2,717

206

3,523

309

Alaska

167

Arizona

476

Arkansas

136

California

185

6,082

2,568

277

553

Colorado

1,125

Connecticut

1,142

Delaware

552

District of Columbia

779

Florida

100

4,141

983

121

Georgia

1,852

Hawaii

790

Idaho

174

Illinois

149

2,567

111

204

Indiana

774

Iowa

161

422

Kansas

313

Kentucky

895

Louisiana

3,553

Maine

299

Maryland

1,048

154

Massachusetts

2,442

263

Michigan

835

Minnesota

1,240

117

Mississippi

1,605

Missouri

1,019

Montana

236

Nebraska

492

Nevada

988

New Hampshire

360

New Jersey

1,685

New Mexico

New York

131

4,990

102

1,204

North Carolina

1,226

North Dakota

465

Footnotes at end of table.

148

Airports, docks, and

wharves [2]

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Table 10. New Money Long-Term, Tax-Exempt Private Activity Bonds, by State of Issue and

Selected Bond Purpose, 2010—Continued

[Money amounts are in millions of dollars]

Selected bond purpose

Total [1]

State of issue

Airports, docks, and

wharves [2]

Water, sewage, and

solid waste disposal

facilities

Qualified residential

rental facilities

Number

Amount

Number

(1)

(2)

(3)

Amount

(4)

Amount

(5)

(6)

(7)

2008 Housing Act

bonds issued under IRC

section 142

Amount

Number

(8)

(9)

Amount

(10)

Ohio

2,276

Oklahoma

164

Oregon

482

Pennsylvania

172

2,733

Rhode Island

265

South Carolina

681

South Dakota

239

Tennessee

905

Texas

4,997

783

515

Utah

281

Vermont

203

Virginia

1,618

126

Washington

924

182

West Virginia

388

Wisconsin

1,221

Wyoming

Footnotes at end of table.

149

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Table 10. New Money Long-Term, Tax-Exempt Private Activity Bonds, by State of Issue and

Selected Bond Purpose, 2010—Continued

[Money amounts are in millions of dollars]

Selected bond purpose

State of issue

Qualified Midwestern

disaster area exempt

facility bonds, and

qualified Midwestern

disaster area mortgage

bonds

Recovery zone facility

bonds

Qualified mortgage

bonds

Number

Amount

Number

Amount

Number

Amount

Number

Amount

Number

Amount

(11)

(12)

(13)

(14)

(15)

(16)

(17)

(18)

(19)

(20)

6,267

235

2008 Housing Act

bonds issued under IRC

section 143

All States

Alabama

4,539

375

418

427

Alaska

Arizona

119

Arkansas

California

559

Colorado

Connecticut

Delaware

100

District of Columbia

Florida

194

439

Georgia

239

Hawaii

Idaho

126

Illinois

459

Indiana

Iowa

119

Kansas

4,295

865

Kentucky

Louisiana

2,766

Maine

Maryland

187

Massachusetts

269

Michigan

241

Minnesota

134

Mississippi

1,398

Missouri

170

Montana

Nebraska

110

Nevada

New Hampshire

New Jersey

110

New Mexico

New York

470

209

North Carolina

384

North Dakota

233

Footnotes at end of table.

150

Qualified Gulf

Opportunity Zone

exempt facility bonds,

and Gulf Opportunity

Zone mortgage bonds

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Table 10. New Money Long-Term, Tax-Exempt Private Activity Bonds, by State of Issue and

Selected Bond Purpose, 2010—Continued

[Money amounts are in millions of dollars]

Selected bond purpose

State of issue

Qualified Gulf

Opportunity Zone

exempt facility bonds,

and Gulf Opportunity

Zone mortgage bonds

Qualified Midwestern

disaster area exempt

facility bonds, and

qualified Midwestern

disaster area mortgage

bonds

Recovery zone facility

bonds

Qualified mortgage

bonds

Number

Amount

Number

(15)

(16)

(17)

Amount

(11)

(12)

Amount

(13)

(14)

2008 Housing Act

bonds issued under IRC

section 143

Amount

Number

(18)

Amount

(19)

(20)

Ohio

488

Oklahoma

Oregon

154

Pennsylvania

Rhode Island

South Carolina

South Dakota

Tennessee

117

182

Texas

Utah

Vermont

102

Virginia

133

Washington

West Virginia

Wisconsin

165

124

Wyoming

Footnotes at end of table.

151

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Table 10. New Money Long-Term, Tax-Exempt Private Activity Bonds, by State of Issue and

Selected Bond Purpose, 2010—Continued

[Money amounts are in millions of dollars]

Selected bond purpose

State of issue

Qualified student loan

bonds

Number

Amount

Number

Amount

Number

Amount

Number

Amount

Number

Amount

(21)

(22)

(23)

(24)

(25)

(26)

(27)

(28)

(29)

(30)

Qualified hospital

facilities

11,710

983

All other bonds,

combined [3]

All States

Alabama

335

578

863

249

Alaska

Arizona

116

136

Arkansas

California

349

1,526

Colorado

401

280

Connecticut

309

647

Delaware

District of Columbia

373

Florida

460

955

Georgia

450

327

Hawaii

Idaho

Illinois

531

1,022

16,202

2,252

Indiana

253

189

Iowa

104

138

Kansas

119

133

Kentucky

579

Louisiana

325

Maine

Maryland

577

Massachusetts

520

1,085

Michigan

198

199

Minnesota

103

553

Mississippi

Missouri

232

287

Montana

103

Nebraska

116

Nevada

New Hampshire

111

New Jersey

393

766

New Mexico

New York

504

1,649

North Carolina

531

North Dakota

Footnotes at end of table.

152

Qualified section

501(c)(3) nonhospital

bonds

Qualified small issue

bonds

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Table 10. New Money Long-Term, Tax-Exempt Private Activity Bonds, by State of Issue and

Selected Bond Purpose, 2010—Continued

[Money amounts are in millions of dollars]

Selected bond purpose

State of issue

Qualified small issue

bonds

Qualified student loan

bonds

Number

Amount

(21)

(22)

Amount

(23)

(24)

Qualified section

501(c)(3) nonhospital

bonds

Qualified hospital

facilities

All other bonds,

combined [3]

Number

Amount

Number

Amount

Number

(25)

(26)

(27)

(28)

(29)

Amount

(30)

Ohio

829

456

Oklahoma

Oregon

181

Pennsylvania

864

913

Rhode Island

South Carolina

346

130

South Dakota

Tennessee

227

236

Texas

348

790

1,112

1,398

Utah

Vermont

Virginia

378

386

Washington

358

131

West Virginia

216

Wisconsin

621

180

Wyoming

d—Data deleted to avoid disclosure of information about specific bonds. However, the data are included in the appropriate totals.

[1] A given bond issue can include more than one purpose. Thus, the summation of number of issues by purpose will sometimes exceed the total number of issues. However,

the money amounts add to the totals.

[2] For purposes of this table, certain bond purposes were combined. For this reason, data in this table will differ slightly from the data in Tables 7 and 9.

[3] For purposes of this table, this category includes all issues for which a specific purpose either did not apply or was not clearly indicated on Form 8038, Information Return for

Tax-Exempt Private Activity Bond Issues , as well as bonds issued for: local electricity or gas furnishing facilities, facilities issued under a transitional rule of the Tax Reform Act

NOTE: Detail may not add to totals because of rounding.

153

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Table 11. Taxable Direct Payment Bonds Allowed Under the American Recovery and Reinvestment Act

(ARRA), by Bond Purpose and Size of Entire Issue, 2010

[Money amounts are in millions of dollars, except for size of entire issue, which is in whole dollars]

Size of entire issue

All issues

Bond purpose

Total [1, 2]

Build America bond direct payment

$1,000,000 under

$5,000,000

$5,000,000 under

$10,000,000

Number

Amount

Number

Amount

Number

Amount

Number

Amount

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

2,586

126,230

326

170

661

1,811

409

2,876

2,037

120,098

264

132

459

1,260

284

1,973

Education

682

30,930

133

392

114

772

Health and hospital

3,883

Transportation

269

29,389

107

147

Public safety

208

2,272

113

Environment

242

8,018

143

122

Housing

461

Utilities

471

25,104

109

104

224

277

Bond and tax/revenue anticipation notes

229

Other purposes [3]

464

19,809

110

241

493

Recovery zone economic development

bond direct payment

549

6,131

202

551

125

903

Capital expenditures related to property

located in the zone

238

2,508

347

Public infrastructure and construction of

public facilities

278

2,978

109

298

479

645

Other purposes [4]

Footnotes at end of table.

154

Under

$1,000,000

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Table 11. Taxable Direct Payment Bonds Allowed Under the American Recovery and Reinvestment Act

(ARRA), by Bond Purpose and Size of Entire Issue, 2010—Continued

[Money amounts are in millions of dollars, except for size of entire issue, which is in whole dollars]

Size of entire issue

Bond purpose

Total [1, 2]

$10,000,000 under

$25,000,000

$25,000,000 under

$75,000,000

$75,000,000 or more

Number

Amount

Number

Amount

Number

Amount

(9)

(10)

(11)

(12)

(13)

(14)

493

7,917

367

15,917

330

97,538

Build America bond direct payment

381

6,150

331

14,491

318

96,091

Education

169

2,533

142

5,856

21,361

Health and hospital

218

3,033

Transportation

361

1,200

27,564

Public safety

380

426

1,252

Environment

413

1,125

6,203

Housing

Utilities

871

2,875

20,802

Bond and tax/revenue anticipation notes

Other purposes [3]

1,255

2,276

15,524

Recovery zone economic development

bond direct payment

112

1,767

1,426

1,447

Capital expenditures related to property

located in the zone

878

320

Public infrastructure and construction of

public facilities

809

669

705

422

Other purposes [4]

d—Data deleted to avoid disclosure of information about specific bonds. However, the data are included in the appropriate totals.

[1] Includes bonds reported on Form 8038-B, Information Return for Build America Bonds and Recovery Zone Economic Development Bonds , as well as bonds reported on Form

8038-G, Information Return for Tax-Exempt Governmental Obligations, with a specific reference to "Build America Bond direct payment" or "Recovery Zone Economic Development

Bond" in either their issue name or other description. Data excludes returns specifically referencing "Build America Bond tax credit" in either their issue name or other description.

[2] A given bond issue can include more than one purpose. Thus, the summation of number of issues by purpose will sometimes exceed the total number of issues. However, the

money amounts add to the totals.

[3] "Other purposes" refer to Build America Bonds for which a specific purpose either did not apply or was not clearly indicated on Form 8038-G, Information Return for Tax-Exempt

Government Obligations or Form 8038-B, Information Return for Build America Bonds and Recovery Zone Economic Development Bonds .

[4] "Other purposes" refer to Recovery Zone Economic Development Bonds for which a specific purpose either did not apply or was not clearly indicated on Form 8038-G, Information

Return for Tax-Exempt Government Obligations or Form 8038-B, Information Return for Build America Bonds and Recovery Zone Economic Development Bonds . Data combines

bonds reported for "other purposes" and "job training and educational programs" to avoid disclosure of specific bonds.

NOTE: Detail may not add to totals because of rounding.

155

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Table 12. Taxable Direct Payment Bonds Allowed Under the American Recovery and

Reinvestment Act (ARRA), by State of Issue and Bond Type, 2010

[Money amounts are in millions of dollars]

All issues

State of issue

All States [1]

156

Recovery zone economic

development bond direct payment

Build America bond direct payment

Number

Amount

Number

Amount

Number

(1)

(2)

(3)

(4)

(5)

Amount

(6)

2,586

126,230

2,037

120,098

549

6,131

Alabama

659

417

242

Alaska

291

207

Arizona

1,528

Arkansas

California

127

23,716

105

23,003

713

Colorado

2,622

Connecticut

1,211

1,128

Delaware

416

341

District of Columbia

1,130

Florida

3,763

3,491

272

Georgia

3,416

3,137

279

Hawaii

1,240

1,180

Idaho

169

Illinois

225

8,091

168

7,711

381

Indiana

1,528

1,459

Iowa

455

403

Kansas

418

369

Kentucky

113

1,697

107

1,641

Louisiana

570

Maine

115

Maryland

2,174

Massachusetts

2,902

2,718

184

Michigan

105

1,997

1,493

504

Minnesota

116

1,197

1,045

151

Mississippi

668

Missouri

161

2,284

120

2,059

224

Montana

Nebraska

752

676

Nevada

1,568

1,529

New Hampshire

225

New Jersey

5,269

5,109

160

New Mexico

257

New York

15,055

14,929

126

399

North Carolina

109

1,502

1,103

North Dakota

105

Ohio

144

6,803

6,474

330

Oklahoma

517

Oregon

1,235

1,143

Pennsylvania

3,706

3,648

Rhode Island

South Carolina

915

807

108

South Dakota

368

303

Footnotes at end of table.

Municipal Bonds, 2010

Statistics of Income Bulletin | Spring 2013

Table 12. Taxable Direct Payment Bonds Allowed Under the American Recovery and

Reinvestment Act (ARRA), by State of Issue and Bond Type, 2010

[Money amounts are in millions of dollars]

All issues

State of issue

Recovery zone economic

development bond direct payment

Build America bond direct payment

Number

Amount

Number

Amount

Number

(1)

(2)

(3)

(4)

(5)

Amount

(6)

Tennessee

1,743

1,559

Texas

9,809

184

Utah

1,721

1,641

Vermont

172

Virginia

2,701

2,628

Washington

4,372

4,286

West Virginia

Wisconsin

206

1,546

190

1,484

Wyoming

178

129

U.S. Possessions [2]

1,193

d—Data deleted to avoid disclosure of information about specific bonds. However, the data are included in the appropriate totals.

[1] Includes bonds reported on Form 8038-B, Information Return for Build America Bonds and Recovery Zone Economic Development Bonds , as well as bonds reported on

Form 8038-G, Information Return for Tax-Exempt Governmental Obligations , with a specific reference to "Build America Bond direct payment" or "Recovery Zone Economic

Development Bond" in either their issue name or other description. Data excludes returns specifically referencing "Build America Bond tax credit" in either their issue name or

other description.

[2] U.S. Possessions include Puerto Rico and the U.S. Virgin Islands.

NOTE: Detail may not add to totals because of rounding.

157

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.